Minister: Tehran, Baghdad should enhance trade ties

Business Materials 25 January 2012 17:36 (UTC +04:00)

Azerbaijan, Baku, Jan. 25 / Trend F.Milad/

Iranian Minister of Roads and Urban Development said that Iran and Iraq have the potential to give a boost to their trade ties and raise the two-way trade from the current $7 billion annually.

In a meeting with Iraqi transport minister Hadi al-Amiri in Tehran, Ali Nikzad added that the bilateral trade between Iran and Iraq stands at around $7 billion annually, while potentials of the two sides ensure the opportunity to enhance relations in different sectors, IRNA news agency reported.

Iran's First Vice-President Mohammad-Reza Rahimi said on July 7 that Iran and Iraq have agreed to increase the value of their bilateral trade to $20 billion in the near future.

"We agree to increase the value of mutual economic and trade exchange, which is expected to reach $10 billion by the end of the current year, to $20 billion in the near future," Press TV reported.

The value of Iran's annual non-oil exports to the neighboring Iraq has increased to around $5 billion in the current year from just $790 million in 2005, Iranian ambassador to Iraq said.

"Iran exported some $1 billion in electricity and oil products and the same amount in technical and engineering services to Iraq in the previous year," Hassan Danaeefar was quoted by IRNA news agency as saying.

Iranian companies plan to build two power plants in Iraq, he said, adding that the two sides have signed a deal, worth $400 million, to establish a gas pipeline from Iran to Iraq.