ECONOMY
Turkish President Recep Tayyip Erdogan (left) and Iraqi Prime Minister Mohammed Shia' al-Sudani during the signature ceremony of multiple MoUs between the countries, in Baghdad on April 22, 2024. Photo: PM Sudani's office
ERBIL, Kurdistan Region - Iraq and Turkey seek to boost their bilateral trade volume to $24 billion, a senior Iraqi parliament member said on Monday, as Turkish President Recep Tayyip Erdogan visited Baghdad to meet with Iraqi officials on matters of common interest.
“The Turkish President stressed the importance of economic ties between the two countries and expressed his country’s desire to increase annual trade volume with Iraq to $24 billion,” Dilan Ghafoor, the head of the foreign relations committee in the Iraqi parliament told Rudaw.
Erdogan arrived in Baghdad on Monday, heading a delegation of at least eight ministers, for a one-day visit during which he met with Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia’ al-Sudani. He later traveled to Erbil to meet with President Barzani and Prime Minister Barzani.
Iraq's trade volume with Turkey had reached approximately $20 billion, Sudani noted in an opinion piece for Rudaw in March 2023.
Following Erdogan’s meeting with Iraqi Prime Minister Sudani, the two leaders announced that Baghdad and Ankara signed over 24 Memoranda of Understanding (MoUs) encompassing cooperation in various fields such as economy, trade, water, and security.
One key MoU is aimed at establishing a Joint Economic and Trade Committee (JETCO) between the Iraqi ministry of trade and the Turkish ministry of trade. Ghafoor, who was present at the meetings, said the two sides discussed measures to increase the volume of trade between the two countries, including reducing customs duties and lifting restrictions on certain imported goods, which he did not specifically identify.
Trade between Iraq and Turkey has increased significantly over the past three decades according to the Massachusetts Institute of Technology (MIT) affiliated Observatory of Economic Complexity (OEC). According to their data, Turkish exports to Iraq in 2021 reached the value of $11.1 billion, a huge leap compared to the mere $119 million they amounted to in 1995.
In his meeting with President Barzani and Prime Minister Barzani, Erdogan told the Kurdish leaders that cooperation with Iraq also includes the Kurdistan Region, revealing Ankara’s desire to improve trade relations with Erbil.
Trade volume between the Kurdistan Region and Turkey amounts to about five billion dollars per year.
Baghdad and Ankara also signed a MoU regarding the multi-billion dollar Development Road project, which stretches from southern Iraq to the border with Turkey, and aims to connect the Persian Gulf with Turkey, significantly enhancing Iraq’s geopolitical stance, and generating economic gains for Baghdad. When completed, the project will also shorten the travel time between Asia and Europe.
Sudani described the project as an “economic river that connects the East and the West.” The agreement to kickstart the Development Road was signed with Turkey, as well as with the transport ministers of Qatar and the United Arab Emirates (UAE).
“The Turkish President stressed the importance of economic ties between the two countries and expressed his country’s desire to increase annual trade volume with Iraq to $24 billion,” Dilan Ghafoor, the head of the foreign relations committee in the Iraqi parliament told Rudaw.
Erdogan arrived in Baghdad on Monday, heading a delegation of at least eight ministers, for a one-day visit during which he met with Iraqi President Abdul Latif Rashid and Prime Minister Mohammed Shia’ al-Sudani. He later traveled to Erbil to meet with President Barzani and Prime Minister Barzani.
Iraq's trade volume with Turkey had reached approximately $20 billion, Sudani noted in an opinion piece for Rudaw in March 2023.
Following Erdogan’s meeting with Iraqi Prime Minister Sudani, the two leaders announced that Baghdad and Ankara signed over 24 Memoranda of Understanding (MoUs) encompassing cooperation in various fields such as economy, trade, water, and security.
One key MoU is aimed at establishing a Joint Economic and Trade Committee (JETCO) between the Iraqi ministry of trade and the Turkish ministry of trade. Ghafoor, who was present at the meetings, said the two sides discussed measures to increase the volume of trade between the two countries, including reducing customs duties and lifting restrictions on certain imported goods, which he did not specifically identify.
Trade between Iraq and Turkey has increased significantly over the past three decades according to the Massachusetts Institute of Technology (MIT) affiliated Observatory of Economic Complexity (OEC). According to their data, Turkish exports to Iraq in 2021 reached the value of $11.1 billion, a huge leap compared to the mere $119 million they amounted to in 1995.
In his meeting with President Barzani and Prime Minister Barzani, Erdogan told the Kurdish leaders that cooperation with Iraq also includes the Kurdistan Region, revealing Ankara’s desire to improve trade relations with Erbil.
Trade volume between the Kurdistan Region and Turkey amounts to about five billion dollars per year.
Baghdad and Ankara also signed a MoU regarding the multi-billion dollar Development Road project, which stretches from southern Iraq to the border with Turkey, and aims to connect the Persian Gulf with Turkey, significantly enhancing Iraq’s geopolitical stance, and generating economic gains for Baghdad. When completed, the project will also shorten the travel time between Asia and Europe.
Sudani described the project as an “economic river that connects the East and the West.” The agreement to kickstart the Development Road was signed with Turkey, as well as with the transport ministers of Qatar and the United Arab Emirates (UAE).
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