Iranian Ambassador: $30B Trade Target with Iraq is Achievable

On Thursday, Iran's ambassador to Baghdad stated that both countries are committed to strengthening economic and commercial ties, highlighting that a bilateral trade target of $30 billion is within reach.

Speaking at a joint meeting between the governors of Ilam in western Iran and Iraq’s Maysan Province on the reopening of the Chilat border crossing, Mohammad Kazem Al-e-Sadegh announced that preliminary approval had been given to build the crossing, The Caspian Post reports citing Iranian media.

He said the project fits into both governments’ broader strategy to expand regional trade and economic cooperation.

Al-e-Sadegh said the new crossing could turn Ilam Province into a hub for economic exchanges. “If managed properly, this project will not only boost local economic activity and create jobs, but also directly improve the quality of life for border communities through infrastructure development,” he said.

Highlighting the economic potential on both sides, the envoy described the Chilat corridor as a key facilitator for achieving the trade volume target.

“This border crossing can become a successful model for joint cooperation between Iran and Iraq,” he said, adding that the move would increase the region’s share of international trade and meet the needs of local border populations.

The opening of the Chilat crossing in Dehloran County, adjacent to the town of Ali Gharbi in Iraq’s Maysan Province, is part of Tehran and Baghdad’s agreements to strengthen cross-border economic cooperation, particularly in frontier provinces.

On Thursday, Iranian and Iraqi officials, including the governors of Ilam and Maysan, parliamentary representatives and Al-e-Sadegh, inspected the border area to review final steps before reopening.

With its proximity to Maysan’s capital Amarah, Chilat is seen as a strategic economic gateway that could become a key channel for Iranian exports to Iraq and the wider region.

Dehloran, rich in oil and gas reserves and home to 123,000 hectares of fertile farmland, is a major agricultural and energy center in Ilam Province. The opening of the border market is expected to boost exports and foreign exchange earnings. The area ranks second nationally in the production of rapeseed, a strategic oilseed crop.

The reopening is also expected to ease heavy traffic during the annual Arbaeen pilgrimage. Currently, most pilgrims cross through the congested Mehran terminal. Authorities say diverting part of the flow to Chilat, especially during peak periods, will help balance traffic and improve service quality at both crossings.