Iraq, Iran: \'A breath of fresh air for the Iranian economy\'

Tag : Weaving Strip
29 July 2008
Leaning on the handlebars of his Iranian-made three-wheelmotorbike, Safar Abdallah is just one of millions of Iraqisenjoying the tidal wave of goods flooding into war-ravaged Iraqfrom Iran.
Five years after the fall of Saddam Hussein, Iraq's former enemyhas finally succeeded in an invasion -- of sorts of Baghdad, aseverything from household appliances to medicines sweep into Iraq'sshops and markets.

Abdallah's Al-Taleb bike was made in Iran under a Chinese license,like all imported three-wheelers, and cost him 1,200 dollars (760euros).

"It's good value because of the money I can make from it", the 20year old said.

These three wheelers can be fitted with seats to carry passengersor a flat-bed frame to transport goods, and can overcome Baghdad'sgridlocked roads by weaving between vehicles.

Trucks filled with Iranian-made goods thunder across the city, muchto the consternation of the United States, which is fearful ofIranian influence in Shiite-dominated Iraq.

Before the fall of the Baathist regime by the US-led forces inApril 2003, Iraq had no well established trade links with Iranexcept some with the semi-autonomous Kurdish region in NorthernIraq.

But since Saddam's ouster, there has been deluge of Iranian goodsinto the country, particularly in the strip from Baghdad to Basra,according anthropologist Hisham Dawoud of the French NationalCenter for Scientific Research.

"Some sources quote figures such as eight billion dollars" for thevalue of Iranian imports in 2008, he said, but added that therewere no official figures on import levels.

Shoppers in the Shiite district of Kadhimiya in Northwest Baghdadsnatch up not only Iranian-made cookers, fridges, air conditioningunits and generators, but also toys, rugs and medicines.

Household electrical goods are "good sellers", said shopkeeperAbdul Ridha Abed Saleh, 51, at his store in Al-Shosa Street. "It isnot that they are good quality, but they use less electricity andare good value," he said.

In the store opposite, Ala al-Salaf also stocks Iranian goods andshared this opinion, saying simply they are, "good value but badquality. And Iraqis are starting to understand".

But this market dominance is under threat from alternative Far Eastexporters.

Shopkeeper Yasser Idan sells Iranian toys and Persian carpets fromhis store in Bab al-Qibla Street, but says buyers prefer Chineseproducts.

"They look better, are more colorful and are of better quality", hesaid.

"If the Iranians don't change... they won't be able to compete withproducts from Taiwan, China and elsewhere", anthropologist Dawoudwarned.

But the future is still bright for Iranian goods like yoghurts,cheeses, vegetables, biscuits, spices, which all sell well. "Thebalance of quality and price is good", grocer Khaled Fadel said.

Iranian cars are also popular. In Kut, south of Baghdad, a statecar importer reported a three-month waiting list for ordersarriving in Iraq.

Meanwhile, religious tourism continues to thrive with an estimatedtwo million pilgrims travelling to Iraq's Shiite shrine cities suchas Najaf and Karbala in 2007, Dawod said, with Iranians making up90 percent of the visitors.

Despite American concerns over Iranian involvement in the country,Dawoud said the imports do not translate into political influenceand are simply the result of pragmatic economics.

"Iranian products are not political tools. The goods sold inIraq... are simply a breath of fresh air for the Iranian economy",he said.
© Monday Morning 2008