Saudi Arabia taking over Iraqi market at expense of Iran, Iranian official warns

ERBIL, (Kurdistan 24) – An Iranian official has claimed his country is losing the Iraqi market to rivals Saudi Arabia due to new policies implemented by the central government in Baghdad.

Ridha Tajrishi, Head of Iran’s Industry and Commerce Body, told Iranian media agencies that Iran had started “to lose” the Iraqi market to Saudi Arabia, criticizing new policies implemented by Iraqi authorities against Iranian products.

The Iranian official accused Iraqi authorities of not maintaining transparency in their trade relations with Tehran, noting that Iranian trucks prevented from crossing the border had increased expenses for Iranian traders.

Criticizing his country’s policies in Iraq, Tajrishi said, “We contribute military spending in Iraq while Iraq’s benefits go to Saudi Arabia.”

The Iraqi government has recently increased fees for Iranian products imported into the country resulting in a decrease of Iranian products, al-Sumeriya news reported.

“The agreement between Saudi Arabia and Iraq to lower tariffs led to a loss in the Iraqi market for Iranian companies,” Tajrishi said.

Tajrishi called on his country’s foreign ministry to contact Iraqi officials and resolve the problem, warning the “Iraqi government’s trade policies have led to huge losses for Iranian traders.”

Saudi-Iraqi relations have improved since Iraqi Prime Minister Haider al-Abadi took office in 2014, replacing Nouri al-Maliki whose relationship with Riyadh had been strained.

Saudi Arabia also reopened its embassy in Baghdad in late 2015 after it was shut down following the Iraqi invasion of Kuwait in 1990.

Editing by Karzan Sulaivany