Yahya Al-Ishak, head of the Joint Iranian-Iraqi Chamber of Commerce and Industry, stated that developing trade ties with Iraq requires unified command and centralized decision-making, given the direct link of this trade to national security and country development, as well as the need to increase maneuverability in the face of changing Iraqi regulations.
During a meeting of the Iranian Chamber of Commerce directors with economic activists from the city of Kermanshah on Wednesday, Al-Ishak noted the close interconnection between regional trade, security, and economic development. He emphasized that due to its geographical location and potential, Kermanshah province can play a significant national role in this chain.
According to Al-Ishak, trade with neighboring states cannot be viewed solely from an economic perspective; it is directly linked to national interests, security, and development, and economic activists bear an important responsibility here.
Achieving the $20 Billion Goal
Al-Ishak considered the goal of $20 billion in trade with Iraq achievable, noting that unofficial estimates currently show trade volumes at the level of $14–$15 billion. He added that increasing this amount is possible provided existing capacities are utilized.
He stressed that besides exports, special attention must be paid to imports, especially essential goods, raw materials, components, and manufactured products. A balance must be found between import and export, while Kermanshah, possessing infrastructure and border capabilities, can effectively meet the country's needs through imports.
Regarding exporters' currency obligations, Al-Ishak explained that their fulfillment should not be limited only to direct currency transfer to the Central Bank. He proposed options of 'import in exchange for export' and 'goods in exchange for goods,' noting that Iran had experience applying such a mechanism in the 1990s, and insisting only on direct monetary payment is not the only solution.
Al-Ishak emphasized that Iran is dealing with a state whose rules are constantly changing, which requires sufficient flexibility. He stated that trade and border issues with Iraq should not be resolved by various disparate bodies, but there must be a central structure for economic relations with Iraq capable of acting promptly and providing provincial officials with the necessary freedom of action.
Referring to the Hosravi border, he noted that decisions at the provincial level are sometimes required. He suggested that delegating some powers related to Iraq to provincial administration would allow for faster resolution of many problems.
Acknowledging differences in Iraqi legislation and regulation, Al-Ishak stated: 'The fact that there are three regions with different rules is a reality. A single fixed formula cannot work for all parts of Iraq. We must accept existing realities and adapt our trade policy accordingly.' He added that while quality, price, and marketing are important, relevance of information and the presence of specialized personnel capable of managing daily issues and problems are more critical for Iraq.
Al-Ishak reported that the Joint Chamber considers it its duty to monitor the issues raised by economic activists. He called on Kermanshah activists to clearly articulate their concerns so that national support can be provided, confirming readiness to assist in removing obstacles.
Hassan Daneifar, head of the Iranian-Iraqi Economic Task Force, also called for opening Joint Chamber offices in the Kurdistan Region and Baghdad to resolve activists' issues and develop trade relations more quickly.
Speaking at the same meeting on Wednesday, Daneifar noted that Iraq remains one of Iran's most important trading partners. He pointed out that Kermanshah consistently ranks first among Iranian provinces in exports to Iraq, even during periods of reduced activity at some border crossings.
Daneifar reported that over the past 18 years, Iraq has received a significant share of Iranian products—averaging about 22 percent of non-oil exports, and in some years, 25–26 percent. He deemed the $20 billion goal realistic and achievable, agreeing with unofficial data on current exchanges of $14–$15 billion. However, he warned about the increased presence of the UAE and China in the Iraqi market, stating that 'Iran must reform its trade and executive methods to maintain and develop its share.'
Daneifar defined the balance between export and import as a key issue, stating that 'unilateral export cannot be sustainable in the long term.'
He added that increasing imports from Iraq, especially for the country's needs, could contribute to the development of economic ties.
He also emphasized the importance of goods barter, stating that exporters' currency obligations should not be limited to direct currency return to the Central Bank. 'Import in exchange for export and goods in exchange for goods are suitable solutions.'
To solve the problems of Iranian traders, Daneifar demanded direct and constant communication with Iraqi officials and economic activists. He insisted on establishing Joint Chamber offices in the Kurdistan Region and Baghdad so that issues could be monitored on site and resolved as quickly as possible, mentioning that Iranian consulates in Erbil and Sulaymaniyah should be utilized.
Regarding reports of sudden increases in Iraqi customs tariffs, Daneifar called for a thorough investigation to determine whether they are related to internal Iraqi decisions or bilateral trade agreements. He strongly requested activists to provide detailed information for further monitoring. Issues concerning exported goods in Sulaymaniyah and other parts of Kurdistan, including testing and customs collection procedures, must be considered individually; he reported that negotiations with Sulaymaniyah officials have arranged a meeting with Iranian representatives.
Daneifar also supported amendments to the Law on Combating Smuggling of Goods and Currency, stating that this should be carried out at the national level. He noted that changing this law could solve some problems in border trade, as similar issues exist in other border provinces and require interdepartmental coordination and national-level decision-making.
Kermanshah: Iran's Gateway to Iraq
Kermanshah province shares a border with Iraq spanning over 371 kilometers, including two official checkpoints and five active markets. Goods worth nearly $3 billion are exported annually across these borders, highlighting the strategic importance of the province in trade relations between Iran and Iraq.
Both officials emphasized that with coordinated decision-making, a balanced trade policy, and institutional presence in Iraq, the $20 billion goal is quite achievable, which could significantly strengthen Iran's regional economic position.