Iraq’s Kurdistan market lucrative for Iran
By Farzam Vanaki
Iran should not lose the two-billion-dollar market of Iraqi Kurdistan region as it was a big market for Iran prior to the closure of border crossings to the Kurdish area following last month’s referendum. Speaking to Iran Daily on the sidelines of the 23rd Press Exhibition currently underway in Tehran, Hamid Hosseini, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), added this week, Iran reopened Bashmagh border crossing with Iraq’s Kurdistan region.
The Bashmagh border crossing is located approximately 50 kilometers (31 miles) east of the city of Sulaimaniya in Iraqi Kurdistan.
He expressed optimism that Iran would reopen Parviz Khan border crossing with the KRG and also would normalize ties with Iraqi Kurdistan as it is a big market for Iran.
Hosseini said China has been Iran’s top trade partner in the past few years, adding exports to China stood at over $4.3 billion during March-september, 2017.
He said Chinese exports to Iran amounted to $9 billion in the same period, putting the country’s total trade with the East Asian state at over $13 billion in the same duration.
The UAE is Iran’s second trade partner with a total trade of $9 billion per annum, Hosseini noted. He put Iran’s exports to and imports from the Arab country at $3 billion and $6 billion per year, respectively.
“Iraq, however, has recently replaced the UAE as Iran’s second top export destination. At present, Iran exports goods worth $3.2 billion to the country annually. As Iranian imports from Iraq is not significant — not exceeding $50 million per year — its trade balance with Iraq is absolutely positive, almost 100 percent in Iran’s favor.”
He underlined that trade with Iraq has helped improve Iran’s total trade balance, adding Iran’s total imports from Iraq do not exceed $50 million, adding, on the whole, taking both exports and imports into account, the Arab nation is Iran’s third biggest trade partner.
“Iran also exports electricity and gas to Iraq and provides tourists from that country with health and medical services. Iran’s total monetary transactions with Iraq amounts to $12 billion per annum.”
He listed India, South Korea, Afghanistan and Turkey as the other major trade partners of Iran.
Hosseini said a major problem facing the country’s foreign trade is the fact that a major portion of Iran’s foreign trade is conducted with a certain number of countries and focused on a certain number of goods.
“To resolve this problem we are required to have a more active trade diplomacy and reduce our reliance on our present limited certain markets.”
He added Iran’s top European trade partner is Germany. “The European country has laid the foundation of Iran’s technology and industries.”
Following the implementation of the Joint Comprehensive Plan of Action — signed between Iran and P5+1 — in January 2016 and the removal of Western sanctions, the highest growth in Iran’s foreign trade with European countries pertained to Germany, he said.
“German companies are very much interested in greater involvement in the Iranian market. Iranian consumers and industrial units are also very much satisfied with German products and technologies.”
Hosseini said France and Italy are Iran’s second and third European trade partners respectively. Italy, he noted, is extending a credit line to Iran.