Erbil and Iran sign MoU to Increase Trade
The governors of Erbil and Iran’s Kurdish-majority West Azerbaijan provinces met on the 28th December and signed a memorandum of understanding (MoU) to increase trade movement and strengthen ties between the two sides.
The MoU consists of 14 points, which includes both sides agreeing to “facilitate trade movement” and develop an industrial zone between Erbil and West Azerbaijan provinces, said Erbil Governor Omed Khoshnaw in a Facebook post after meeting with Governor of West Azerbaijan, Mohammed Sadegh Motamadian.
The Tamarchin-Haji Omaran border crossings “have a good potential for increasing exchanges and trade development between Erbil and West Azerbaijan provinces. During this visit, common goals to solve traffic problems through this border will be examined and removed. The development of trade and commerce was emphasised, ”Mr Khoshnaw was quoted by Iranian state media (IRNA) as saying.
Iran and the Kurdistan Region enjoy good economic relations, sharing several border crossings. A large number of Iranian companies work in the Region’s various sectors.
The Iranian Consul General in Erbil, Nasrullah Rashnoodi told reporters on the side-lines of the visit that “In addition to trade exchanges, the existence of cultural and social commonalities between the Kurdistan region of Iraq and the border provinces of Iran, including West Azerbaijan, has provided a very close exchange and cooperation between the two sides and provided the necessary ground for a comprehensive development,” IRNA quoted him as saying.
Additionally, “It was decided to hold bilateral meetings between the directorates of the provinces of Erbil and West Azerbaijan to resume flights between the cities of Erbil and Urmia,” Mr Khoshnaw said in his Facebook post.
Iran also agreed to establish factories for canning, fruit juice production and dairy products in line with the Kurdistan Region’s demands and the ministry of commerce’s guidelines.
Iran is also a major trading partner for Iraq. Since the overthrow of the regime of Saddam Hussein in 2003, Iraq and the Kurdistan Region have become two important destinations for Iranian goods. Iraq was the second-biggest customer for Iran’s increased exports from February to October of this year.
Tehran’s trade volume with Baghdad and Erbil, including the export of natural gas and electricity, has stood over US$13 billion in recent years.
The Kurdistan Regional Government’s (KRG) representative to Iran told news-link Rudaw in August that ties between Iran and regional powers, including Iraq and the Kurdistan Region, will further develop with the 2021-elected president Ibrahim Raisi.
Kurdistan Region President Nechirvan Barzani met with the new president in Tehran in August where they reaffirmed the importance of developing trade, as well as preserving the security and safety of their shared border and the region in general.
Iranian Ambassador to Iraq Iraj Masjedi said this month that he hopes Kurdistan Region’s companies will begin exporting goods to his country, adding that they are ready to support the Region to prosper in industry, agriculture and advanced technology.
Iran also hopes to develop industrial and free trade zones on its border with the Kurdistan Region.
The Kurdistan Region’s Prime Minister, Masrour Barzani, also discussed “developing economic relations, trade exchanges and investment opportunities” in November with Iran’s Deputy Foreign Minister for Economic Diplomacy Mahdi Safari in Erbil.
Source: Iraq-Business News