Barzani and Pezeshkian Agree to Increase Trade Exchange Between Iraq and Iran

President of the Kurdistan Region of Iraq Nechirvan Barzani and Iranian President Masoud Pezeshkian emphasized during a meeting in Tehran the importance of expanding trade exchange between Iraq and Iran. The meeting took place on the sidelines of the inauguration ceremony of the new Iranian president, where the two sides discussed ways to enhance economic cooperation between the countries, according to sources close to Barzani's entourage.

The central Iraqi government did not issue an official statement regarding the details of the agreements reached during the meeting, raising questions about the extent of coordination between the region and the federal government on external economic files. It is worth noting that the volume of trade exchange between Iraq and Iran amounted to about 12 billion dollars annually in recent years, according to official Iranian statistics, while Iraqi official figures indicate discrepancies in those numbers.

Pezeshkian said during the meeting: "Economic relations between Iran and Iraq are a priority for Tehran, and we are ready to remove obstacles hindering the increase in trade volume." On his part, Barzani's office did not issue a detailed statement on the outcomes of the meeting, with statements limited to affirming the importance of strengthening bilateral relations.

Background on trade relations between the two countries: Iran is one of Iraq's foremost trading partners, especially in the energy and food commodities sectors, although political and security differences between the two countries have at times affected the pace of trade exchange. Iraqi oversight bodies call for reviewing trade agreements with Iran to ensure transparency and protect Iraqi economic interests, especially in light of reports about smuggling goods through unofficial border crossings.