Iran’s Foreign Minister Mohammad Javad Zarif arrived in Iraq’s capital, Baghdad, on Saturday, preparing for Monday’s visit by Iranian President Hassan Rouhani, where a bilateral trade agreement is expected to be signed between the two neighboring countries.
Earlier on Saturday, Iran’s ambassador to Iraq, Iraj Masjedi, said the Memoranda of Understanding (MoUs) with Iraq aims at improving economic cooperation between the two countries.
“These MoUs will be about establishing railway between the border cities of Khorramshahr and Basra, building and developing joint industrial parks, travel visas, customs issues and health and medical cooperation,’ Masjedi said according to the Islamic Republic News Agency (IRNA).
Iran’s border city, Khorramshahr, lies 40 kilometers from Basra in Iraq.
Masejdi added that their “bilateral trade has been seeing a $2.5 billion annual increase with oil and gas exports making the most part of it,” and that a “draft document of easing visa issuance for traders and businessmen and women from both countries is ready.”
According to IRNA, Iran’s current exports to Iraq stand at 13 billion dollars, and that Baghdad and Tehran seek to raise their annual trade volume up to $20 billion.
Rouhani is expected to meet with Iraqi cleric Ayatollah Seyyed Ali Sistani during his three day visit.
