Shafaq News/ On Monday, Iran's Special Trade Representative in Iraq, Farzad Piltan, disclosed that Iraq has declined to establish free trade relations with Iran. 

Piltan, as reported by Mehr News Agency, highlighted the trade capacity between the two nations at $20 billion. However, due to the substantial gap between exports and imports with Iraq, the country hesitates to enter a free trade agreement.

During the first half of this year, Iran exported approximately $4.5 billion worth of goods to Iraq while importing around $150 million in goods from Iraq. 

Piltan, the former West Asia Department of Iran's Trade Promotion Organization (TPO) director general, emphasized the potential for increased trade relations, covering goods, services, electricity, and gas.

Despite the significant trade capacity, Iraq is reluctant to negotiate for a free trade agreement or preferential tariffs. He expressed that the Iraqi government has not been receptive to discussions in these areas, pointing out that Iran faces stiff competition from China and Turkey in the Iraqi markets.

Piltan identified challenges in trade infrastructure, such as one-way transportation of goods, customs clearance at border crossings, and standards. He emphasized that resolving these issues could pave the way for stronger trade relations between the two countries.