Azerbaijan, Iraq boost trade with 49% increase in turnover, minister says

The Azerbaijani Economy Minister, Mikayil Jabbarov, has stated at the Azerbaijan-Iraq Business Forum that Baku and Baghdad have substantial potential to expand their trade relations.

"From January to July 2024, there has been a 49% increase in trade turnover between the two countries," Caliber.Az quotes Jabbarov as saying on September 17.

He also highlighted that around 170 Iraqi companies are currently operating across various sectors in Azerbaijan.

"There is significant potential for Azerbaijani businesses to engage in the Iraqi market. Azerbaijani companies have participated as contractors in major infrastructure projects in Iraq, and the demand for construction, energy, and water supply, roads, and bridges in the country opens new opportunities for our local companies," the minister emphasised.

Jabbarov noted that Azerbaijan's growing transport and transit capabilities, regional and global significant projects where Azerbaijan is both an initiator and participant, and the potential for cooperation represented by the “Middle Corridor”, the Baku International Sea Trade Port, the Baku-Tbilisi-Kars railway line, and other projects provide additional opportunities for mutually beneficial bilateral partnerships. These initiatives highlight Azerbaijan's role in enhancing bilateral partnerships through strategic infrastructure and projects.

According to the State Customs Committee, from January to August 2024, the volume of mutual trade turnover between Azerbaijan and Iraq amounted to over $15.7 million, which is 45.7% more than in the same period last year.

During the forum, five agreements were signed, including those on trade, economy, science, technology, and cultural cooperation on November 10, 2010, and an air service agreement on November 20, 2023.

In 2023, trade between the two countries amounted to $19.6 million, with Azerbaijan importing oils, fats, sugar, paper, cardboard, and cocoa from Iraq.

Since November 2023, flights between Baku and Baghdad have been in operation, and on February 2, 2024, flights on the Baku-Kirkuk route commenced. These flights are managed by Iraqi Airways, with plans to also introduce services from Baku to Erbil and Basra.