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Iraq looks to expand trade with Iran

While officials in both Baghdad and Tehran stress that they are eager to further expand trade relations between the two countries, some Iraqis fear that the government’s pro-Iran policies could be hurting local merchants.
An Iraqi money dealer counts Iranian rial banknotes bearing a portrait of the late founder of the Islamic Republic of Iran, Ayatollah Ruhollah Khomeini, at an exchange office in Baghdad on February 3, 2012. Tens of thousands of Iranian visitors have been finding difficulty in using the Iranian currency in Iraq due to a depreciation of the rial against the dollar. AFP PHOTO/ ALI AL-SAADI (Photo credit should read ALI AL-SAADI/AFP/Getty Images)
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The year 2013 registered high levels of commercial exchange between Iraq and Iran, which reached — according to both Iraqi and Iranian officials — more than $12 billion. This comes at a time when the Iraqi government aspires to increase trade between the two, with a goal of $15 billion. In a telephone conversation with Al-Monitor, adviser to the Prime Minister for Economic Affairs Abdul Hussein al-Anbaki explains that the most common goods imported from Iran to Iraq are canned food — including canned cheese and dairy products — as well as soft drinks, meats, vegetable oil, household items and electrical appliances. 

The Iraqi government hopes that this trade increase will strengthen Iraq’s role in ensuring stability in the region in light of the economic and political influence of Iran. Iraqi Prime Minister Nouri al-Maliki’s media advisor, Ali Musawi, told Al-Monitor that Iraq was striving to strengthen ties with all neighboring countries, without exception. He noted that Iran has had an important weight in economic transactions with Iraq, notably since 2003, and pointed to the ease of commercial exchange between the two countries in terms of transportation and quality of goods, among other factors. Thus, according to Musawi, it is only normal for the two countries' commercial exchanges to increase.

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