Yahya Al-e-Es’haq, the Head of the Iran-Iraq Joint Chamber of Commerce, recently underscored the significance of enhancing trade with Iraq for not only economic prosperity but also national security. He highlighted that this development hinges on unified decision-making, the agility to adapt to Iraq’s evolving regulations, and fostering cooperation among Iranian economic actors. During a meeting with Kermanshah’s economic stakeholders, Al-e-Es’haq pointed out the essential link between trade, development, and security, particularly given Kermanshah’s strategic geographical position.
Achieving the $20 Billion Trade Goal
Al-e-Es’haq described Iran’s ambition to reach a $20 billion trade volume with Iraq as attainable. Current estimates put bilateral trade at around $14-15 billion. “Increasing this figure is achievable through the effective utilization of existing capacities,” he emphasized. He further noted that attention should be focused on both exports and critical imports, including basic necessities and raw materials. Kermanshah is well-positioned to contribute significantly to this balance through its robust border capabilities, suggesting a dual focus on import needs alongside export initiatives.
Moreover, Al-e-Es’haq addressed the complexities of foreign exchange obligations for exporters. He proposed alternatives to just transferring currency to the Central Bank, advocating for mechanisms like import-for-export trade. Drawing on Iran’s past experiences, he noted that insisting on direct currency transactions isn’t the only viable option for trade facilitation.
Streamlining Trade Decision-Making
The dynamic regulatory environment of Iraq demands a centralized approach to trade and border issues, according to Al-e-Es’haq. He argued against fragmented decision-making across various entities, calling for a cohesive decision-making body specifically for economic relations with Iraq. This would enable swift provincial-level responses, particularly at key border points like Khosravi. He emphasized the need to delegate certain authorities to local management to quickly address trade-related challenges.
Al-e-Es’haq acknowledged that Iraq’s multifaceted legal and regulatory landscape—characterized by three distinct regions—relies on adaptable trade policies. He stated, “A one-size-fits-all approach won’t work; recognizing the existing realities is crucial for effective trade.” For Iranian businesses, establishing timely communication and expertise is vital for navigating the regulatory challenges posed by their Iraqi counterparts.
Strengthening Kermanshah’s Role in Trade
Kermanshah plays an essential role in facilitating trade with Iraq, boasting over 371 kilometers of shared border and thriving border markets. This province is responsible for nearly $3 billion worth of annual exports, making it a crucial player in Iran-Iraq commerce. Both Al-e-Es’haq and Hassan Danaeifar, Head of the Iran-Iraq Economic Task Force, reiterated the importance of coordinated decision-making and institutional presence in Iraq to achieve the $20 billion target.
Danaeifar remarked on Iraq’s continued significance as one of Iran’s primary trading partners, noting Kermanshah’s leading position in exports to Iraq. Despite the increased competition from countries like the UAE and China in the Iraqi market, he affirmed that balancing exports and imports is essential for sustainable long-term trade relations. He echoed the need for direct communication with Iraqi officials and urged the establishment of Joint Chamber offices in key Iraqi regions to enhance trade cooperation.
In conclusion, both officials highlighted that fostering a cooperative trade environment around Kermanshah, backed by strategic decision-making and balanced policies, is not only feasible but essential for solidifying Iran’s position in regional trade with Iraq. They remain committed to addressing the obstacles faced by economic stakeholders and facilitating smoother trade processes between the two countries.