Iran: We have obtained Iraq’s approval to export goods through its territory to Kuwait
Iran: We have obtained Iraq’s approval to export goods through its territory to Kuwait
2024-12-26
Iran confirmed on Wednesday that Iraq has allowed Iranian trucks to cross its territory into Kuwait, which will create a jump in Iranian exports and significantly reduce their transportation costs.
Amin Fartosi, a member of the board of directors of the Joint Chamber of Commerce between Iran and Kuwait, confirmed in a press statement: “Iraq has granted the Iranians permission to transit goods to Kuwait through its territory.”
“In trade between Iran and Kuwait, Iranian goods are usually shipped to the sea upon arrival at the port, and then transported by sea to their destination. In the land route, the advantage is that goods enter Iraq from the Shalamcheh crossing, and then enter Kuwaiti territory from the Safwan crossing. It takes about an hour to cross the distance between the Shalamcheh and Safwan crossings, which is much less time compared to the time it takes to transport from Iran to Kuwait by sea,” he added.
“Another advantage of land transportation of goods to Kuwait via Iraq is that the goods are loaded onto trucks at the source and then unloaded at the destination, without the need for unloading and loading again at the port. All these things help reduce the cost of transporting goods, and thus reduce the final cost of trade with Kuwait, making Iran’s exports to other countries via Kuwait more feasible,” he added.
The member of the board of directors of the Joint Chamber of Commerce between Iran and Kuwait continued: “This step is still in the stage of obtaining initial approval from Iraqi officials, and has not been implemented yet. So far, no export goods have been shipped through the Iraqi transit route to Kuwait. But if this route is implemented, it will bring about a major shift in trade between Iran and Kuwait.”
“Kuwaitis are demanding materials such as plaster, cement, stone, fruits and vegetables, and seafood from Iran, and for years these products have been exported to the Kuwaiti market via sea,” Fartosi pointed out. “However, the time to ship these goods to Kuwait via Iraq transit will be significantly shorter to the point that some food items may not even need refrigerated trucks.”
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