Iraq import curbs drive down Iranian exports

Shafaq News – Tehran / Baghdad

Iran’s exports to Iraq fell to around $3B in the first four months of the Iranian year, down from $3.77B in the same period last year, according to Hamid Hosseini, a board member of the Iran-Iraq Joint Chamber of Commerce.

Hosseini told Iran’s Fars News Agency that tighter customs duties on rebar imports, restrictions at certain border crossings, and the disruption caused by the Arbaeen pilgrimage were key factors behind the decline. He also pointed to the recent 12-day conflict in the region as another source of volatility.

He said Iran’s monthly exports to Iraq averaged $800M in the first quarter of the year, rose above $1B last month, but dropped again in August.

Trade between the two countries reached nearly $12B last year, with ambitions to push the figure to $15B in the coming year, according to the chamber’s secretary-general, Jahan Bakhsh Sanjabi Shirazi.

Iran’s Customs Administration reported in March that non-oil exports to Iraq totaled $11.2B over 11 months, making Iraq the second-largest destination for Iranian goods after China.