Masoud Pezeshkian’s Visit to Iraq: A Chance for an Economic Leap in Iran-Iraq Relations

11 September 2024 3:54 PM

WANA (Sep 11) – The recent visit of Iran’s president to Iraq took place at a time when relations between the two countries have entered a new phase. This visit is seen as a significant opportunity to strengthen commercial and economic interactions between Tehran and Baghdad. Choosing Iraq as the first foreign destination highlights the special importance of this country in Iran’s foreign policy.

Trade Potential Between the Two Countries: From $10 to $30 Billion

Estimates suggest that the trade potential between Iran and Iraq could expand to as much as $30 billion annually, whereas the current figure stands at around $10 billion. This $20 billion gap indicates untapped opportunities that, with proper planning and the removal of obstacles, could lead to broader commercial cooperation.

Professor Hadi Samadi, an international economics professor at Tehran University, states: “The economic potential of Iran and Iraq could potentially lead to much larger economic cooperation. Given Iraq’s infrastructure needs and Iran’s export capacity, if the two countries can effectively overcome trade barriers, they can easily achieve their set commercial goals.”

Iraqi PM received President Masoud Pezeshkian during his first visit to Iraq – 11 Sep 2024 – President office / WANA News Agency

Iraq’s Infrastructure: An Opportunity for Iran

The Iraqi government, which has an extensive plan to rebuild and develop its infrastructure, can benefit from Iran’s expertise and capabilities. Areas such as road construction, hospitals, urban renewal, and schools are among the proposed fields of cooperation. These projects would not only assist Iraq but also create new economic opportunities and jobs for Iran.

In this regard, Reza Mirabian, a regional affairs expert, says: “We can participate in many of Iraq’s infrastructural and foundational projects… There is a massive amount of work in Iraq, and fulfilling this can meet the needs of both parties.”

Shared Oil and Gas Reserves: The Next Step in Cooperation
Activating the shared oil and gas reserves between the two countries is another strategic goal of this visit. This cooperation could increase energy production and help stabilize both nations’ positions in global markets. Moreover, utilizing these shared resources is a key factor in enhancing energy security and reducing reliance on other foreign actors.

Pezeshkian’s visit to Iraq, with a focus on strengthening economic and trade relations, marks an important step in developing bilateral cooperation. From the $30 billion trade potential to collaboration in infrastructure and energy projects, this visit could pave the way for a new outlook for both countries. Despite challenges and obstacles, Iran and Iraq can, through planning and strengthening political and economic ties, become one of the most important regional partners.