Iran’s exports to Iraq are losing momentum, a report on the Financial Tribune said.
According to Mostafa Mousavi, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture, the reason is to be sought in the low quality and high prices of Iranian products.
He also referred to poor packaging as another reason behind Iran’s loss of Iraqi market, IRNA reported.
Mousavi said Iran’s rivals in the Iraqi market (mainly China, Turkey and Syria) pay subsidies to exporters, which have effectively diminished the competitiveness of Iranian exporters.
“We can’t compete with them, under the current situation,” he said.
Although it is embroiled in war, Syria exports agro products to Iraq, notably with refrigerated vehicles. This is while the Iranian transportation system lacks the infrastructure,” he said.
Referring to hot weather in Iran’s border provinces of Khuzestan and Ilam, Mousavi said the export of perishable products from these regions is a challenge.
Iran exported 4.13 million tons of non-oil commodities worth over $2 billion to Iraq during the four months to July 22, indicating a 13.7% decrease in volume and a 6.5% increase in value compared with the previous year’s corresponding period, according to the Islamic Republic of Iran Customs Administration.
According to Ebrahim Rezazadeh, secretary of Iraq’s Desk at Trade Promotion Organization of Iran, the country’s share of Iraqi market stood at 19.7% in March 2016-17.
“Iran exported a total of 14.2 million tons of commodities worth $6.1 billion to Iran last year, registering a 1.84% and 1.59% decline year-on-year,” he said.
Iran’s main exports to the neighboring country include agro products, foodstuff and fruits such as watermelon, tomato and cucumber, which account for 37% of the total exports.
Other Iranian exports to Iraq include canned food, tomato paste, chicken, egg, meat, construction materials (mainly rebar, tiles and ceramics), steel and evaporative cooler as other commodities Iran exports to Iraq.
Turkey’s share in the Iraqi market stood at 21% last year.