Trade with Iraq requires unity of command

‘Trade with Iraq requires unity of command’

TEHRAN- Yahya Al-e-Es'haq, Head of the Iran-Iraq Joint Chamber of Commerce, emphasized that developing trade with Iraq — given its direct link to national security and development — requires centralized decision-making, unity of command, and increased maneuverability against Iraq's changing regulations.

Speaking Wednesday at a meeting of Iran's Chamber of Commerce directors with Kermanshah economic activists, Al-e-Es'haq said there is a direct relationship between regional trade, development, and security. He noted that Kermanshah's geographical position and capacities allow it to play an important national role in this chain.

"Trade with regional countries should not be viewed merely from an economic perspective," he said. "It is directly tied to national interests, security, and development, and economic activists bear an important responsibility."

$20 billion target achievable

Al-e-Es'haq described the $20 billion trade target with Iraq as achievable, noting unofficial estimates currently place exchanges at $14-15 billion. "Increasing this figure is possible, and existing capacities must be utilized," he said.

He stressed that alongside exports, imports — particularly of basic needs, raw materials, parts, and production goods — must receive special attention. "A balance must be created between exports and imports," he said, adding that Kermanshah, with its border capacities and infrastructure, can play an effective role in supplying the country's needs through imports.

Addressing exporters' forex obligations, Al-e-Es'haq said fulfilling them should not mean only directly transferring currency to the Central Bank. "Import against export and goods against goods are usable solutions," he said, noting Iran had experience with this mechanism in the 1990s. "Insisting on direct currency delivery to the Central Bank is not the only solution."

Al-e-Es'haq stressed that Iran faces a country whose regulations constantly change, requiring sufficient maneuverability. "Trade and border issues with Iraq should not be decided in a scattered manner across various organs," he said. "There must be a decision-making center for economic relations with Iraq that can act according to time and place, and give provincial officials the necessary maneuverability."

Citing the Khosravi border, he said immediate provincial-level decisions are sometimes necessary. "If part of the authority related to Iraq is delegated to provincial management, many problems will be solved more quickly."

Noting Iraq's legal and regulatory differences, Al-e-Es'haq said: "The existence of three regions with different regulations is a reality. A single fixed formula cannot work for all parts of Iraq. We must accept existing realities and adapt our trade policies accordingly."

He added that while quality, price, and marketing matter, "for Iraq, being up-to-date with information and having specialized personnel who can manage daily relations and problems is more important."

Al-e-Es'haq said the Joint Chamber considers it its duty to follow up on problems conveyed by economic activists. "Kermanshah activists must convey their issues explicitly so necessary follow-up can be done at the national level," he said, affirming readiness to stand alongside them in removing obstacles.

Also, Hassan Danaeifar, Head of the Iran-Iraq Economic Task Force, called for establishing Joint Chamber offices in the Kurdistan Region and Baghdad to resolve economic activists' problems more quickly and develop trade relations.

Speaking at the same Wednesday meeting, Danaeifar said Iraq remains one of Iran's most important trading partners. Kermanshah has consistently held first place in exports to Iraq among Iranian provinces, he noted, even during periods when some border crossings had less activity.

Danaeifar said that over the past 18 years, Iraq has absorbed a significant portion of Iran's products — on average about 22 percent of non-oil exports, reaching 25-26 percent in some years.

He further described the $20 billion trade target as real and achievable, with unofficial statistics showing current exchanges at $14-15 billion. However, he warned that UAE and China have increased their presence in the Iraqi market. "Iran must reform its trade and executive methods to maintain and develop its share," he said.

Danaeifar identified balance between exports and imports as a key issue. "One-sided exports cannot be sustainable long-term," he said. "Increasing imports from Iraq, especially for supplying the country's needs, can help develop economic relations."

He also emphasized goods barter, saying exporters' currency obligations should not be limited to direct currency return to the Central Bank. "Import against export and goods against goods are suitable solutions," he said.

To solve Iranian traders' problems, Danaeifar called for direct, continuous communication with Iraqi officials and economic activists. "The Joint Chamber should have offices in the Kurdistan Region and Baghdad so problems can be followed up on-site and resolved in the shortest time," he said, noting Iran's consulates in Erbil and Sulaymaniyah should be utilized.

Regarding reports of sudden Iraqi customs tariff increases, Danaeifar said careful examination is needed to determine whether they stem from Iraq's internal decisions or bilateral trade frameworks. He urged activists to provide detailed information so follow-up can proceed. Issues concerning export goods in Sulaymaniyah and other Kurdistan areas — including testing procedures and duty collection — must be examined case-by-case, he said, adding that talks with Sulaymaniyah officials have arranged for a meeting with Iranian economic representatives.

Danaeifar also backed amending the Law on Combating Smuggling of Goods and Currency, saying it must be pursued nationally. "Amending this law can resolve part of the problems in border trade," he said, noting similar issues exist in other border provinces and require national-level decision-making and inter-agency coordination.

Kermanshah: Iran's gateway to Iraq

Kermanshah Province shares over 371 kilometers of border with Iraq, with two official crossings and five active border markets. Nearly $3 billion worth of goods is exported annually through these borders, underscoring the province's strategic importance in Iran-Iraq trade relations.

Both officials emphasized that with coordinated decision-making, balanced trade policies, and institutional presence in Iraq, the $20 billion target is within reach — a goal that could significantly strengthen Iran's regional economic position.

EF/MA

source: tehrantimes.com