Financial Tribune

"Iraq is the second major customer of Iranian goods after China," he said, adding that less than one-third of the exports during the six-month period went to the Iraqi Kurdistan Region.

According to Mahmoud Torkzadeh, the deputy head of Arvand Free Trade Zone for investment and business development, about $2 million worth of commodities are exported from Iran's southwestern Shalamcheh border crossing to Iraq daily, ILNA reported.

As per the latest report of the Islamic Republic of Iran Customs Administration, Iran's overall non-oil exports in H1 hit $20.54 billion, indicating a 3.2% decline year-on-year. As such, Iraq accounts for about 15% of Iran's total exports.

Arvand Free Trade Zone is located along the northwestern coast of the Persian Gulf and spans 37.4 hectares of land. The FTZ borders Iraq and Kuwait, and has access to road, sea, rail and air transportation.