Iraq-Turkiye trade shift continues to reshape bilateral economic ties, as new restrictions and local laws change the flow of goods.
Iraq’s imports from Turkiye declined sharply in the first quarter, totaling $2.59 billion compared to $2.94 billion during the same period last year. This represents a 13.7% decrease and marks a significant trade shift between the two countries.
Manar al-Obaidi, head of the Iraq Future Foundation, reported that 49 out of 97 product categories saw declines. Notably, precious metals and gold imports plummeted by a staggering 490%, representing the steepest fall. Wheat-based goods fell by 75%, meat by 74%, iron by 33%, flour by 17%, and electrical appliances by 8%.
However, despite these drops, several sectors experienced growth. Grain imports rose by 93%, fuel increased by 76%, fruits went up by 24%, mechanical equipment climbed 9%, and furniture rose 8%. These increases suggest a shift in Iraq’s priorities or domestic demand patterns.
Al-Obaidi attributed the trade shift to four key factors. First, Turkiye implemented tighter export restrictions on certain goods. Second, Iraq’s product protection laws limited imports to support local industries. Third, border control enforcement tightened across major trade points. Finally, new import delivery systems changed how products enter the country.
Turkiye’s broader economic data supports this narrative. The Turkish Statistical Institute (TURKSTAT) showed Turkiye’s total exports rose by 2.5%, reaching $65.32 billion. Its imports climbed 4.5%, reaching $87.81 billion. Iraq still ranked as the fifth-largest importer of Turkish products during this quarter.
While Turkiye and Iran remain Iraq’s top suppliers, Gulf countries and Jordan also contribute smaller import volumes. Still, the Iraq-Turkiye trade shift could continue if these patterns hold.
This evolving trade dynamic has deep implications. It could pressure Iraqi businesses reliant on Turkish goods and force diversification. It may also encourage Iraqi producers to meet demand gaps left by declining imports.
Moreover, continued trade regulation changes may affect long-term trade balances. As Iraq recalibrates its supply chains, both governments must coordinate to ensure stable economic cooperation.