Iraq Looks to Expand Trade with Iran

This is a prime example of the phenomena that could increase even further if Iraq’s pro-Iran economic policies remain as are. Since the second half of 2003, the Iraqi government has allowed the import of Iranian fruits and vegetables, making them a strong competitor for local produce. This led to huge losses for Iraqi famers. Moreover, Iran cut off the water [from rivers that run from Iran to Iraq] to increase Iranian fruit and vegetable exports to Iraq.

Nahida al-Daini, a member of the parliamentary Economy and Investment Committee, told Al-Monitor that the local economy will continue to be negatively affected by the commercial exchange with Iran whether sanctions are lifted or not, because the Iraqi government is totally subordinate to Iran.

She noted that Iran is inflicting great losses on the Iraqi economy, yet the commercial exchange is increasing every year. This denotes fluctuations in the economic policy of Iraq, and this is why the government should take the initiative and seek a variety of trade exchange with neighboring countries and not just Iran.

The Iranian Trade Development Organization announced in June 2013 that Iraq is the biggest importer of Iranian goods, affirming that 72% of Iran’s exports go to Iraq. It also noted the Iraqi imports of Iranian goods have increased by 15.7% in comparison to last year.

(Picture: Haj Omran border crossing between Kurdistan and Iran)