Iran Should Not Fall Behind Others in Iraq’s Competitive Market

What was your most distinguished activity during your tenure as the first ambassador of Iran to Iraq after Saddam Hussein regime?

The implementation of the ۱۹۷۵ Algiers Agreement (commonly known as the Algiers Accord) between Iran and Iraq was the most important measure which was taken at that time. Saddam had imposed a war against Iran under the pretext of the Algiers Accord.

How do you evaluate current economic relations between Iran and Iraq?

Trade and economic relations between Iran and Iraq have been growing in recent years. Looking at the trend of development of bilateral economic cooperation, shows that the two-way trade stood at about $۸۰۰ million in the Iranian year ۱۳۸۳ (March ۲۰۰۴-March ۲۰۰۵), while the figure surged to some $۱۲ billion in the year ۱۳۹۱ (March ۲۰۱۲-March ۲۰۱۳).

What are the most important fields of cooperation?

The cooperation includes non-oil trade, exports of electricity, oil and gas, technical and engineering services, tourism, as well as medical tourism. Iran's exports to Iraq account for ۹۵ percent of the total trade, while Iraq holds a ۵ percent share. By the end of the Iranian year ۱۳۹۱ (March ۲۰, ۲۰۱۳), some ۳.۲ million people of the two countries travelled from a country to the other. These statistics indicate the growing trend of relations between the two countries. It should be mentioned that the two sides have the potential to further increase relations. If we can remove existing bottlenecks and extant problems, the bilateral trade will be increased by ۲-۳ times.

Iran is currently exporting some ۱۲۵۰ megawatts of electricity to Iraq per day. However, the figure can be further increased. Although Iraq has taken measures and has made investments to boost infrastructures and establish power plants, it will take several years to reach sustainable development as the goal requires high security to be materialized. We forecast Iraq will need more electricity in the coming years, because Iraqi power plants will not be able to meet demands of the country's industries. Moreover, we have a number of plans underway in the field of rail construction, because for the time being the railway has been extended just to Shalamcheh. So, we should extend it more in order to speed up transportation and tourist transfer.

What are the positive issues in relations between the two countries and the existing potentials in Iraq?

There are significant potentials for cooperation between Iran and Iraq, and conditions for cooperation between the two countries are appropriate. At present, Iraq's oil income in ۲۰۱۴ is expected to exceed $۱۴۰ billion. The figure proves the country's suitable opportunity for progress. On the other hand, one of the differences between relations of Iraq with Iran compared to relations with other countries is that Iraq is a consumer of Iranian end products. Another positive issue in relations between Iran and Iraq is the serious willingness of leaders of the countries for expanding bilateral ties. From among the existing potentials, it can be referred to a long border, various border passages - which are seven passages at present -, ۱۰-۱۲ border markets, an active embassy, and five consulate generals in Iraq. Also, it should be noted that developmental infrastructures in Iraq have been destructed during the past three decades. These all indicate that grounds and conditions are ready for cooperation between the two countries, but obstacles should not be disregarded. They should be removed through proper planning.

In your opinion, how Iran can take advantage of the existing opportunities to expand trade with Iraq?

Today, some two million residential units should be built in Iraq. After receiving lands from the investment committee, Iranian companies will need to acquire knowledge and technology as well as capital in order to be able to start construction works. The same situation applies inside Iraq. Iraqi people have changed their points of view toward Iranian goods and technical and engineering services despite all the propagandas made by rivals. Our goods and services are welcomed, though we should make effort in order to keep our position in the competition.

What are the main problems and obstacles and what should be done to remove the obstacles?

This issue requires taking some measures both in Iran and Iraq. In fact, the most important measure is to prepare infrastructures in the two countries. Also, approving regulations which can facilitate the two-way trade will play a key role in this regard. We are under international sanctions. In completion with foreign companies, Iranian companies are facing problems to provide bid bonds for participating in tenders and for transferring money in the banking system. However, Iranians have gained the experience of construction after the Iraqi imposed war in all fields of industry, agriculture, and services. Also, Iran has carried out the Mehr Housing Project, and Iraq needs to benefit from Iran's expertise in this field.

The transit route of Iran's Imam Khomeini Port to Iraq is another potential. The port has the capacity of loading and unloading ۳۰,۰۰۰ tons of goods. The fact is that the transit route from Iran to Iraq is the most secure, the most sustainable, the shortest, and the most economically justified among all the transit routes in the region.

In your opinion, what measures should be taken to remove the obstacles?

One of the measures which should be taken is to facilitate exports. We should adopt policies to facilitate exports, because the country is under the international sanctions. We should follow the case seriously, because Iraq enjoys the best potential. Paying attention to borer infrastructures, especially the ۲۴-hour traffic of traders and their easy transportation, standardizing our terminals and the active presence of agencies of different government organizations, including banks and customs as well as marketplaces, will help facilitate the bilateral trade. Regarding exports of technical and engineering services, Iranian companies have found out the importance of the Iraqi market. As I mentioned earlier, Iranian companies are suffering from the sanctions. So, the government should support them in order to set up a special fund for technical and engineering services with the aim of helping Iranian companies to act as investors in international tenders. Of course, this issue should not be disregarded that due to low value of Iranian currency, making investment in other countries faces some problems. Other decisions, such as cancelling visa, can contribute to the expansion of bilateral relations. This issue can especially help develop medical tourism and treatment. We have taken preliminary steps in this regard and a special mechanism is being developed, which can be an incentive in boosting bilateral relations. Another section of our measures is related to exports. As I mentioned, we should devise regulations which can facilitate the process of exporting. Iran should cooperate with Iraq in the frame of long-term plans. This is one of the key factors in cooperation between the government and the private sector. Securing interests of the two nations is also among our responsibilities. Establishing industrial parks is another measure which should be taken. This issue is currently being studied and planned.

What is the position of rival countries in the Iraqi market toward each other? How do you evaluate the situation of competition?

Generally speaking, rival countries adopt different positions toward Iran and each other with two main goals. The first is to prevent Iranian companies from implementing projects in Iran. The second is to prevent the Iraqi government and the nation to benefit from Iran's capabilities.

What do you suggest to the Iraqi government toward improving relations between the two countries?

Iraq should improve security for its people as well as foreigners. Security conditions are very important for the presence of traders and economic entrepreneurs in Iraq. Moreover, the red tape in Iraq has slowed down the progress of works. I hope this problem will be removed step by step. In addition, if we have long-term plans in different sectors, we will be successful in Iraq. Iran and Iraq are the two strategic allies in the region the can jointly improve the overall situation in the region and remove all the economic and political problems. Interests of the two nations are dependent on each other. The two sides have taken steps to remove the extant problems. This issue is a special advantage for the Muslim world. A close cooperation between Iran and Iraq will thwart plots of enemies for sowing the seeds of discord.