Falahatpisheh: Iran's Economic Performance in Iraq is Negative Compared to Turkey and Saudi Arabia

The head of the National Security and Foreign Policy Commission of the Iranian Parliament criticized what he called the 'negative' economic performance of the Islamic Republic in Iraq, warning that Turkey and Saudi Arabia are gaining a 'position' in the Iraqi markets. This news comes at a time when Iraq has extensive relations and commonalities with Iran, and despite Baghdad being considered one of the world's major oil producers, it relies on imports of electricity and gas from Iran. Heshmatollah Falahatpisheh, referring to a meeting of the National Security Commission titled 'Economic Strategies of Iran in Iraq and Syria,' added that if the 'economic ring' for Iran in these two countries is 'lost, everything we sacrificed in political and military arenas will practically be lost and become history.' This representative introduced 'economic players' as 'different' from political and military players, stating: 'Countries like Turkey and Saudi Arabia, which are accused in Iraq and Syria, have gained roles and positions, and their forces are becoming prominent within government institutions.' According to Falahatpisheh, the response of the National Security Commission to the question of whether 'given Iran's good performance in the political and military arenas in Iraq, has it also performed well economically?' was 'negative.' He mentioned that 'the place of Iranian goods is empty in Baghdad's markets' and that 'an unfair competition has formed in the cities of Najaf and Karbala, leading to the practical elimination of Iranian companies.' These remarks come as Iraq is the second-largest market for Iranian exports. Iraj Masjedi, Iran's ambassador to Iraq, stated in Azar that the volume of trade and non-oil exports from Iran to Iraq would reach $8.5 to $9 billion by the end of the year. He expressed hope that this volume would reach $20 billion in the coming years. According to Masjedi, currently 'millions of people travel between the two countries for trade, treatment, education, and pilgrimage,' which is 'unprecedented between the two countries.' According to official statistics, the total volume of Iraq's trade with various countries around the world is about $190 billion annually, with Iran's share of this market, including electricity and gas—which is known as state trade—amounting to about $14 billion. The United States granted Iraq a 45-day exemption in Aban this year to continue importing gas from Iran after the return of sanctions against Tehran, but international energy experts say that Iraq needs a year to stop purchasing gas from Iran to find alternative sources. In this context, Iran, under the pressure of sanctions, is seeking to increase exports to Iraq. New plans between Iran and Iraq include trading with dinars and establishing an economic zone. The Iranian ambassador stated that all Iranian military advisors have left Iraq.