Iranian officials announced that trade exchange with Erbil, northern Iraq, continued despite the campaign to boycott Iranian goods, which is gaining reasonable popularity in local markets, according to Iraqi businessmen.
Despite the enthusiasm shown by merchants for the boycott, they fear a price hike following the failure to secure alternative goods at reasonable costs.
On Friday, deputy head of Iran's Trade Promotion Organization (TPO) Mohammad-Sadeq Qanadzadeh said that trade between Iran and Erbil continues because the two "have a long-term relationship."
The Mehr Agency quoted Qanadzadeh as saying that the Chamber of Commerce's decision to ban Iranian goods in Erbil "did not have any impact on the trade volume."
The official stressed solid and long-term relations link the two countries' private sector.
He claimed that based on Iranian data, nothing changed after the boycott, adding that, in general, there was no change in trade between the two countries.
The boycott, he said, was an "emotional reaction" with limited impact.
Moreover, Qanadzadeh announced that Tehran and Erbil will soon establish a joint trade committee.
The Erbil Chamber of Commerce and Industry called on merchants and consumers to boycott Iranian goods in wake of Tehran’s attack on the Kurdish capital, Erbil, earlier this month. Iran claimed it was targeting Israeli spy agents in the city, allegations Kurdistan denied.
Tehran's Chamber of Commerce stated that it was "deeply saddened" by the call from Erbil's Chamber of Commerce and Industry to boycott Iranian products.
It called on their Kurdish and Iraqi counterparts to "look to the future with determination and open hearts."
Erbil is a booming market for Iranian products. It imports goods from Tehran through six ports.
According to Reuters, the annual trade exchange rate between the Kurdistan region and Iran amounts to about $6 billion. Iranian exports to Kurdistan include food, crops, and building materials.
Before the attack, Kurdish officials discussed possible facilities with Iranian investors to expand various opportunities in the region.
Merchants and consumers in Erbil told Asharq Al-Awsat that they joined the boycott campaign, and many tried to find local or Arab alternatives.
Last week, the Kurdish Ministry of Agriculture met with farmers to discuss supplying the region's markets with crops instead of importing them from Iran.
On Monday, the Ministry decided to bar the import of tomatoes from abroad until further notice.
Kurdish media quoted merchants in Erbil as saying that Iranian goods are flooding the Kurdish and Iraqi markets and that searching for Arab or Turkish alternatives may be difficult because Iranian goods are cheaper.