Iran, Iraq look to expand economic ties amid US sanctions
Despite US sanctions, Iranian and Iraqi officials hope to increase economic ties.
Weeks after the United States reimposed sanctions on Iran — even though UN monitors said Iran was in compliance with the nuclear deal that was signed under former US President Barack Obama's administration — Iranian President Hassan Rouhani said that Iran-Iraq bilateral trade could increase to $20 billion from its current $12 billion, and he spoke of expanding economic ties and relations between the two countries.
Rouhani made those remarks during a press conference with Iraqi President Barham Salih, who is currently visiting regional countries after assuming office in October. His next stop was Iran’s regional rival Saudi Arabia. Rouhani said the two leaders discussed economic issues including cooperation in electricity, gas, petroleum, oil exploration and extraction, and a railroad connection between the two countries for the purposes of trade and transportation of pilgrims between western Iran and southern Iraq.
In November, the United States granted Iraq a 45-day waiver to import natural gas and energy supplies from Iran. Salih said that Iraq is still currently negotiating with the United States over the fate of Iran-related sanctions after the waiver period. Some of the paths discussed publicly by Iranian and Iraqi officials for the purpose of evading US sanctions is the use of the dinar instead of the dollar, using a barter system for Iraqi goods in place of Iranian gas and the creation of a free-trade zone.
Salih thanked Iran for its help in fighting against Saddam Hussein's rule and also for its support in fighting against the Islamic State (IS). He discussed the importance of jointly addressing environmental issues and water issues in the region. Salih also said that Iraq can play a role in helping other countries establish relations — an indirect reference to the Iran-Saudi Arabia rivalry.
