Businessupdated 53m ago2 min read
Iran-Iraq Trade Growth Continues As Chazzabeh Border Closure Faces Negotiations
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Iran-Iraq trade remains on a growth trajectory with most border crossings operating normally. Iran sustains roughly 13% of Iraq’s import market despite declines.
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Trade stays on track
Yahya Al-e Es’hagh, chairman of the Iran-Iraq Joint Chamber of Commerce, said Iran and Iraq trade is “on trajectory growth” and dismissed concerns over the temporary closure of the Chazzabeh border crossing. Yahya Al-e Es’hagh emphasized that “The closure of a single border is not in the interest of either country,” and he said active negotiations between relevant authorities in Tehran and Baghdad are underway to restore normal operations.
Yahya Al-e Es’hagh added that stepped-up trade relations are running uninterrupted with all but one border crossing continuing to operate normally. Yahya Al-e Es’hagh said localized, temporary developments may affect the immediate volume of trade, but they do not undermine the fundamental pillars of cooperation between the two neighboring nations.
Border closures and market share
Šengabi Shirāzi said the existence of about 18 border crossings between Iran and Iraq includes seven official crossings, and he said commercial activity continues at an acceptable level at 15 crossings. Šengabi Shirāzi said the Iraqi government closed Jawaba Border Crossing unilaterally, while the Iranian Embassy in Baghdad rejected the explanations provided by the Iraqi Prime Minister’s adviser and urged Iraqi officials to clarify and rectify the statements.
Šengabi Shirāzi said closing one port could cause a temporary disruption, but traders could redirect shipments to alternative routes within less than a week. Šengabi Shirāzi warned that American pressure might be behind efforts to reduce trade with Iran, and he said Iran’s exports to Iraq in 2024 exceeded $10 billion while total trade amounted to around $12 billion.
Obstacles and negotiations
Jahanbakhsh Sanjabi Shirazi, Secretary General of the Iranian-Iraqi Joint Chamber of Commerce, said Iran’s share of the Iraqi import market is stable at around 13% despite a noticeable decline in Iraq’s total imports. Jahanbakhsh Sanjabi Shirazi said trade between the two countries faces seven main obstacles, including difficulties in financial transfers and settling dues due to international banking restrictions, as well as unstable regulations and sudden export restrictions.
Jahanbakhsh Sanjabi Shirazi said health standards constraints and import licenses further complicate shipments of food and agricultural products, while rising competition in the Iraqi market and entry of other international companies affect long-term planning. Al-Isḥāq told the Iranian News Agency that “The commercial crossings continue their activity,” and he said the exception was the Jazaibah Crossing, which was temporarily closed, with negotiations and consultations ongoing to resolve the issue.