Iraq’s Construction Sector Still Needs Iran-Made Rebar
17:00 - June 13, 2024

Iraq’s Construction Sector Still Needs Iran-Made Rebar

TEHRAN (ANA)- The director general of the West Asia Office of the Trade Promotion Organization of Iran (TPOI) said that the neighboring Iraq has to construct almost three million homes that require concrete and rebar, providing a good market for Iranian manufacturers.
News ID : 6216

“In 2011, Iran prepared a comprehensive steel program. At that time Iraq was one of the closest markets for the export of Iranian steel materials. Therefore, out of the 55 million tons target in the steel master plan, about 20 million tons was considered to be exported, part of which to Iraq. However, over time, steel supply chain in Iraq got ready. For example, the 30% duties on the imports of Iranian steel to Iraq became problematic at the end of last year (ended on March 19,2023),” Abdul Amir Rabihavi said in an interview with local Iranian media.

“Although Iraq pursues the policy of self-sufficiency, it cannot achieve complete self-sufficiency and it does not match Iran in terms superiorities in some mining fields. For example, in the area of ​​Iraqi steel, it needs to import raw materials from Iran and then turn them into ingots. Also, Iraq needs about three million homes that require concrete and rebar. Although rebar production plants are operating in the country, due to Iraq's high demand for this product, it cannot ban the imports of rebar for the time being,” the TPOI official said.

“Nevertheless, Iraq has a piece of legislation that calls for protecting domestic production, according to which, it follows a tariff policy to reduce imports. These duties bring the prices of imported goods close to the prices of domestically produced goods,” Rabihavi continued.

He also said that Iraq considers zero tariffs for investment projects according to the foreign investment protection law, noting, “Therefore, if the rebar exporter reaches an agreement with an Iraqi party that defines the investment project, it can get the necessary permit from Iraq to import its products free of any duties.”


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