Iran, Iraq signs MOU to broaden trade initiatives

Iran Materials 27 January 2012 12:21 (UTC +04:00)

Azerbaijan, Baku, Jan. 27 / Trend F.Milad/

Iranian Roads and Urban Development Minister Ali Nikzad and Iraqi Transport Minister Hadi al-Amiri signed a memorandum of understanding in Tehran on Thursday to boost cooperation in the transport sector.

The MOU also sees an exchange of technical and engineering services by the two countries, the IRNA news agency reported.

Mr Nikzad said that bilateral trade between Iran and Iraq stands at around $7 billion annually, while the potential for both sides provides the opportunity to enhance relations in different sectors.

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

The value of Iran's annual non-oil exports to neighbouring Iraq has increased to around $5 billion in the current year from just $790 million in 2005, the 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 added, the IRNA news agency reported.

Iranian companies are expected 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.