ERBIL, Kurdistan Region – "Iraq is the primary target for the export of Iranian goods," Iranian Ambassador to Iraq Iraj Masjidi said ahead of President Hassan Rouhani's state visit to Iraq on Monday. The trip is described by the Iranian side as “historic."
Between now and "March 2020, we expect to hold more than 40 Iranian professional exhibitions in Iraq,” the ambassador added.
Rouhani's three-day trip comes after several high profiles visits by Iranian officials accompanied by trade delegations in recent months, and as US President Donald Trump ramps up economic pressure on Tehran after he reneged on his responsibilities under the Joint Comprehensive Plan of Action (JCPOA), otherwise known as Iran's nuclear deal.
Iran is under increasing pressure from an American government that wants to curtail the Islamic Republic’s ability to trade with the outside world, mainly in the energy, banking, and shipping sectors.
The wide ranging nature of sanctions imposed by Washington has prompted the Iranian side to look more to its immediate neighbors to fend off the debilitating impact on its economy.
"We have good working relations with Iraq ranging from health to security and we hope to reach agreements between the countries on this trip," Foreign Minister Javad Zarif told reporters in Baghdad on Saturday as he arrived a day early to make arrangements for the president's trip.
Iranian officials hope to increase trade with its western neighbour from $12 billion to $20 billion in the coming years. Masjidi said on average $2.5 billion is added annually to the trade volume between Iran and Iraq, with particular attention given to natural gas and electricity for southern Iraq.
Iran has become forthcoming in facilitating easy travel for Iraqis and Kurds by scrapping visa requirements.
Zarif told Iraqi channel Forat News on Saturday that Rouhani is expected to visit Grand Ayatollah Ali al-Sistani in Najaf, an important move if the visit goes ahead considering the unparalleled political clout that the Grand Ayatollah exerts.
The most important challenge that Iranian policy makers face right now appears to be how to deal with US sanctions. While Iran has been under some sort of sanctions since 1979 when the Islamic revolutionaries came to power, the aggressive postures of the Trump administration are what cause consternation in Tehran.
The US government has increased pressure on Baghdad in a bid to stop Iraq’s trade with Iran.
Iraqi President Barham Salih told reporters on Sunday that the visit by Rouhani is to deepen relations between the two countries.
"I must say that Iraq will not be part of the one-sided American set of sanctions on Iran... It is in the interest of everyone that we reduce the tension in the region," Salih told a group of Iranian reporters on Sunday. "Instead of becoming a place for confrontation and clashes between the regional states, we want Iraq to become a place with shared economic and trade interests."
It appears, however, that Iraq is becoming yet another battleground as tensions between Washington and Tehran grow day by day. Rouhani will receive a warm reception from Iraqi officials, but the Americans will be watching the trip equally closely to counter what they describe as Iran's “malign” influence in Iraq. Rouhani's trip is set to make life more complicated for Iraqi leaders who would like to avoid being stuck between these adversaries.