Image copyright AFP Image caption Iranian President Hassan Rouhani (L) was welcomed by his Iraqi counterpart, Barham Saleh

Iran's President Hassan Rouhani has begun his first official visit to Iraq since taking office five years ago.

After meeting his Iraqi counterpart, Mr Rouhani said he wanted deeper political and economic ties between their states, which fought a bloody war in the 1980s.

He noted that Iran had come to Iraq's aid in recent years when it was threatened by the Islamic State group.

Iranian officials see Iraq as a way to mitigate the US sanctions reinstated by President Donald Trump last year.

Mr Trump's decision, made after he abandoned a 2015 nuclear deal, has led to a sharp downturn in Iran's economy, pushing the value of its currency to record lows, quadrupling its annual inflation rate, and driving away foreign investors.

What has Iran's president said?

Mr Rouhani began his three-day visit to Iraq with a visit to the shrine of Shia Muslim Imam Moussa al-Kadhim in northern Baghdad. He was then greeted by his Iraqi counterpart, Barham Saleh, at the presidential palace.

At a joint news conference, Mr Rouhani said: "We want to forge very close relations with Iraq. We do not seek to be allied against others, but rather seek to invite other regional states to our alliance as well."

Image copyright Reuters Image caption Mr Rouhani visited the shrine of Imam Moussa al-Kadhim in Baghdad

He pointed out that Iran had stood by Iraq in "difficult" times - a reference to its training and arming of thousands of Iraqi Shia paramilitary fighters who have helped drive Islamic State (IS) militants out of the large parts of Iraq they seized in 2014.

Mr Saleh said he agreed with the "necessity of enhancing trade" and "setting up related economic infrastructure between our countries and peoples".

Iran's president later held talks with Prime Minister Adel Abdul Mahdi, whose governing coalition includes Shia parties with deep links to Tehran.

Before leaving Tehran, Mr Rouhani said Iraq's ties with Iran could not be compared to its links with an "occupying country" like the US that was "hated in the region".

The US, which invaded Iraq in 2003 to overthrow President Saddam Hussein, has sent thousands of troops to the country to advise and assist security personnel battling IS. But it and Iran back opposing sides of the conflicts in Syria and Yemen.

How much trade already takes place?

A senior Iranian official accompanying the president told Reuters news agency that Iraq was "another channel for Iran to bypass America's unjust sanctions" and that his trip to Baghdad would "provide opportunities for Iran's economy".

Economic ties between the neighbours are already extensive.

Image copyright AFP Image caption Household appliances and air conditioners are major Iranian exports to Iraq

In the 12 months up to March 2018, Iraq imported about $6bn (£4.6bn) of goods from Iran, including food, agricultural products, household appliances, air conditioners and car parts. Iraq paid another $6bn to Iran for natural gas, petroleum products and electricity.

Mr Rouhani has said he wants to increase bilateral trade from $12bn to $20bn annually. However, Iraq has faced pressure from the US to stop doing business with Iran.

Iraq discontinued crude oil swaps with Iran in October and did not receive an exemption when a new wave of sanctions came into effect the following month. It was, though, reportedly granted a limited waiver to give it time to find alternative supplies of electricity.

Have Iran-Iraq ties always been good?

No. Under Saddam - who was a Sunni - Iraqi forces invaded Iran in 1980, sparking an eight-year war that left a million people dead and devastated both countries.

Bilateral relations only began to improve after Saddam was toppled and an Iraqi government led by Shia parties - many of them backed by Iran - came to power.

Iran later armed Shia militants who attacked US forces in Iraq to press them to withdraw and targeted Sunnis in a brutal sectarian conflict.

In last year's elections in Iraq, parties linked to Iran-backed paramilitary groups won the second largest number of seats in parliament. But the largest number went to a bloc led by the Shia cleric Moqtada al-Sadr, who opposes US and Iranian influence.</s>(Hatha al-Youm | Iraq News )- As economic interdependence is growing between Iran and Iraq, private companies are being given the pivotal role to nurture increasingly powerful and mutually beneficial relations between the two important neighbors.A delegation of 32 business people is tagging along as President Hassan Rouhani is currently visiting Iraq to shore up ebullient trade partnership against US subterfuge.The private sector provides the wiggle room for both countries to navigate the complex maze of US sanctions imposed on Iran after President Donald Trump withdrew from a landmark 2015 nuclear deal with the Islamic Republic in May.For their run-of-the-mill maintenance, Iraqis depend on Iranian companies for everything from food to machinery, electricity, natural gas, fruits and vegetables.Iraq’s infrastructure has been destroyed in 30 years of wars, mostly after the US invasion which saw the bulk of the highly-skilled human force leave the country.Iran offers an invaluable pool of human capital, services and resources which are literally within a walking distance from the Iraqi border.Hence, choking such a vital source is as much damaging - if not worse - to Iraq as it is to Iran, explaining President Barham Salih’s declaration that Iraq’s interests lie in maintaining very good relations with Iran.“I deliberately repeat this sentence several times. We Iraqis have an interest in strengthening these relations with Iran, and we must see them as a main issue among all our regional relationships,” he said Monday, with Rouhani on his side.The two presidents oversaw the signing of several trade deals on oil, trade, health, and a railway linking the southern Iraqi oil city of Basra and the Iranian border town of Shalamcheh.Most importantly, private companies earned a real feather to their cap as the two sides agreed on measures to make it easier for businessmen and investors to obtain visas.The new deals will also convince Tehran that Baghdad is serious about not being “party to the system of sanctions against Iran” as Iraqi Prime Minister Adel Abdul-Mahdi said in February.Last year, Iran exported $8.7 billion worth of commodities to Iraq, overtaking Turkey with $7.3 billion of exports. According to Secretary General of Iran-Iraq Chamber of Commerce Hamid Hosseini on Monday, Iran is likely to also surpass China as the biggest exporter to the Arab country this year.Last year, 1.5 million Iraqis visited Iran but this figure rose to 2 million in the first seven months of the Iranian calendar year (March 2018-February 2019).Hosseini said the number of Iraqis visiting Iran is expected to hit 3 million by the end of the year on March 21, including 300,000 visiting as medical tourists.Moreover, Iran hopes to discuss reviving up to $8 billion worth of technical and engineering projects signed by its private companies in 2014, which were suspended as Daesh terrorists invaded the Arab country.Banking issues are a top priority of Rouhani’s visit, with Hosseini saying they had been ironed out and trade exchanges had improved and stabilized.Last month, Iran’s Central Bank governor Abdulnaser Hemmati and his Iraqi counterpart signed an agreement to develop a payment mechanism for euro and dinar-based transactions to facilitate banking between the two countries.Officials have promised to grow the already flouring trade which has jumped from $2 billion a year eight years ago to over $12 billion today, and is expected to rise to $20 billion in two years.Other than economic benefits, improved ties between Iran and Iraq have important security and geostrategic implications for both countries.Iran was famously the first country to respond to Iraqi calls for help after Daesh terrorists in June 2014 captured the main northern city of Mosul and threatened to overrun the capital Baghdad and the oil-rich region of Kirkuk.President Salih on Monday thanked Iran for its "support" and said Iraq was "lucky" to have it as a neighbor, without making any reference to the US.The United States remains entrenched in its bid to sever Iraq’s ties with Iran. Trump made a secret trip to Iraq in December and made comments that US forces should stay in Iraq to keep an eye on Iran.Hosseini said American efforts to disrupt relations between the two countries were futile.“The Americans want to disrupt our relations, especially with neighboring countries, through economic sanctions, but given Iraq’s demographic density in the borders with Iran, our economic and social exchange will continue.”Iraq and Iran share a 1,400-kilometer-long (870 miles) border. Apart from consumer goods, Iraq relies on Iran for electricity.Gas imports from Iran generate as much as 45 percent of Iraq's 14,000 megawatts of electricity consumed daily. Iran transmits another 1,000 megawatts directly, making itself an indispensable energy source for its Arab neighbor.Rouhani’s visit will make it all but impossible for the White House to refuse to exempt Baghdad, which has openly rebuffed Washington’s pressure to cut its energy ties with Iran.“The futility of US pressure on Iraq over Iran should serve as a fresh reminder of the fundamentally questionable nature of Trump’s one-dimensional and confrontational Iran policy,” former Boston University professor Kaveh Afrasiabi wrote.“This effort to demonize Tehran as a force of subversion with respect to its neighbors flies in the face of the opposite reality: the increasingly powerful and mutually beneficial relations between Iran and Iraq,” he added.</s>Iranian President Hassan Rouhani was in Baghdad on Monday, making his first official visit to the nation that Tehran once fought a bloody war against and later backed in the battle with the Daesh terrorist group.

Since Rouhani's election in 2013, Iraq has relied on Iranian paramilitary support to fight Daesh, following the militant group's capture of the Iraqi city of Mosul and other territories in both Iraq and Syria.

The visit is a strong message to the United States and its regional allies that Iran still dominates Baghdad, a key arena for rising tension between Washington and Tehran.

"We are very much interested to expand our ties with Iraq, particularly our transport cooperation," Rouhani said at Tehran's Mehrabad airport. "We have important projects that will be discussed during this visit."

Rouhani, who is accompanied on the three-day visit by a high-ranking political and economic delegation, was received by an honor guard on landing in Baghdad, where he was welcomed by Iraqi Foreign Minister Mohammed Ali Al-Hakim. Rouhani then visited the shrine of Imam Kadhim, the seventh of 12 imams revered by Shiites worldwide. Rouhani, a Shiite cleric himself, paused to reach out and touch the gate surrounding the tomb. He then met President Barham Salih and spoke to journalists, telling them that a "stable Iraq will lead to stability in the entire region." "We want to be united countries, not against others, but attracting others to our unity," Rouhani said. For his part, Salih said Baghdad's central location made it crucial to resolving regional issues. He thanked Iran for its support during Iraq's fight against Daesh.

Relations between the two countries were not always close, they fought a bloody war from 1980 to 1988. Tehran's influence in Baghdad grew after the 2003 U.S.-led invasion of Iraq toppled the government of Saddam Hussein.

Since Rouhani's election in 2013, Iraq has relied on Iranian paramilitary support to fight Daesh terrorists, following the militant group's capture of the Iraqi city of Mosul and other territory in both Iraq and Syria. Now with the militants facing a final territorial defeat in the Syrian village of Baghouz, Iran is looking for Iraq's continued support as it faces a serious pressure campaign by the U.S. President Trump after his decision to withdraw America from Tehran's nuclear deal with world powers.

The visit also came amid Baghdad coming under pressure from Washington to limit political and trade ties with its neighbor. Shiite-majority Iraq is walking a fine line to maintain good relations with its key partners Iran and the U.S. who themselves are arch-foes. It has been under pressure from Washington not to get too close to its neighbor, particularly after its withdrawal from the 2015 nuclear deal. Baghdad was given limited waivers to continue buying electricity and natural gas from Iran, but Washington has urged Iraq to partner with U.S. companies to become energy independent.

Regarding the regional impact of this visit, the talks between Iraq's chief Shiite cleric Grand Ayatollah Ali Sistani and Rouhani would show that it also aimed at bolstering the ranks of Shiite Muslims in the face of Iraq's warming ties with Iran's Sunni-ruled rival Saudi Arabia. The meeting could "prevent Saudi Arabia and its allies from sowing discord" between Iran and Iraq, a Shiite cleric from the Iranian holy city of Qom was recently quoted as saying in Iran's Ebtekar newspaper. Saudi Arabia is keen to develop relations with Baghdad to counter the influence of Iran in Iraq, which is seeking economic support to rebuild after the defeat of Daesh.

During the three-day visit, a series of agreements will be signed in fields such as energy, transport, agriculture, industry and health Iran's state news agency IRNA said.

"Iraq is another channel for Iran to bypass America's unjust sanctions imposed on Iran. This trip will provide opportunities for Iran's economy," a senior Iranian official, who is accompanying Rouhani, told Reuters.

"These two countries are the two pillars and pulse of the region," Zarif said.

"Therefore, this three-day summit will be historic and hopefully a major step forward in bilateral ties," he was quoted by the news agency ILNA as saying on Sunday.

The parlous state of Iran's economy since U.S. President Donald Trump's decision last May to pull out of a 2015 nuclear deal between Iran and six major powers has pushed the country's leaders to try to expand trade ties with neighbors.

The agreement lifted in 2016 sanctions that had been imposed by the United States, European Union and United Nations in return for Iran's curbs on its sensitive nuclear programme.

The Trump administration, which said the accord was too generous and failed to rein in Iran's ballistic missile programme and its involvement in regional conflicts such as Syria and Yemen, reimposed sanctions on Tehran.

Other signatories to the deal have been trying to salvage the pact after the U.S. exit, but U.S. sanctions have largely scared off European companies from doing business with Iran.

The Europeans have promised to help firms do business with Iran as long as it abides by the deal. Iran has itself threatened to pull out of the 2015 deal unless EU powers demonstrably protect its economic benefits.</s>Shi’ite Iran is determined to strengthen its brotherly ties with neighbouring Iraq, Iranian President Hassan Rouhani said on Monday before his “historic” first visit to the country, state television said on Monday.

The visit is a strong message to the United States and its regional allies that Iran still dominates Baghdad, a key arena for rising tension between Washington and Tehran.

“We are very much interested to expand our ties with Iraq, particularly our transport cooperation,” Rouhani said at Tehran’s Mehrabad airport. “We have important projects that will be discussed during this visit.”

During the three-day visit, a series of agreements will be signed in fields such as energy, transport, agriculture, industry and health Iran’s state news agency IRNA said.

“Iraq is another channel for Iran to bypass America’s unjust sanctions imposed on Iran. This trip will provide opportunities for Iran’s economy,” a senior Iranian official, who is accompanying Rouhani, told Reuters.

The parlous state of Iran’s economy since US President Donald Trump’s decision last May to pull out of a 2015 nuclear deal between Iran and six major powers has pushed the country’s leaders to try to expand trade ties with neighbours.

The agreement lifted in 2016 sanctions that had been imposed by the United States, European Union and United Nations in return for Iran’s curbs on its sensitive nuclear programme.

The Trump administration, which said the accord was too generous and failed to rein in Iran’s ballistic missile programme and its involvement in regional conflicts such as Syria and Yemen, reimposed sanctions on Tehran.

Other signatories to the deal have been trying to salvage the pact after the US exit, but US sanctions have largely scared off European companies from doing business with Iran.

The Europeans have promised to help firms do business with Iran as long as it abides by the deal. Iran has itself threatened to pull out of the 2015 deal unless EU powers demonstrably protect its economic benefits.</s>BAGHDAD (Reuters) - Iranian President Hassan Rouhani condemned U.S. military intervention in the Middle East on Monday as he began a first official visit to Iraq, meant to bolster Tehran’s influence and expand trade ties to help offset renewed U.S. sanctions.

His visit also signaled to Washington and Gulf Arab allies that, in the face of U.S. sanctions reimposed after the U.S. pullout from world powers’ nuclear deal with Iran, Tehran still plays a dominant role in Iraqi politics.

Prior to his departure, Rouhani said Shi’ite Muslim Iran was determined to strengthen ties with its Shi’ite-led Arab neighbor, Iranian state television reported on Monday.

Those ties “cannot be compared to Iraq’s relations with an occupying country like America, which is hated in the region,” the semi-official Mehr news agency quoted Rouhani as saying before he flew to Baghdad. “One cannot forget the bombs that Americans dropped on Iraq, Syria and other regional countries.”

During Rouhani’s three-day visit a series of agreements will be signed in energy, transport, agriculture, industry and health, the Iranian state news agency IRNA said.

“We have the right conditions for cooperation in all areas, including trade and investment..., energy, electricity and gas, banking ties and cooperation on roads and railways,” Rouhani told journalists after meeting Iraqi President Barham Salih.

“Iraq is an important state in the region and it can play a bigger role in providing security,” he said without elaborating.

A senior Iranian official accompanying Rouhani told Reuters that Iraq was “another channel for Iran to bypass America’s unjust sanctions ... this trip will provide opportunities for Iran’s economy”.

Iraq relies on Iranian gas imports to feed its power grid and has asked for extensions to a U.S. waiver to continue importing Iranian gas since U.S. President Donald Trump restored sanctions on Iran’s vital energy sector in November.

The slump in Iran’s economy since Trump’s decision last May to pull out of the 2015 nuclear deal between Iran and six major powers has pushed the Islamic Republic to try to expand commercial ties with neighbors.

The 2015 agreement lifted sanctions that had been imposed by the United States, European Union and United Nations in return for Iran curbing aspects of its nuclear program.

The Trump administration said the accord was too generous and failed to rein in Iran’s ballistic missile capabilities and its involvement in regional conflicts in Syria and Yemen.

Other signatories to the deal have been trying to salvage the pact, but U.S. sanctions have largely scared off European companies from doing business with Iran.

The Europeans have promised to help firms do business with Iran as long as it abides by the deal. Iran has itself threatened to pull out of the agreement unless EU powers demonstrably protect its economic benefits.</s>Iranian President Hassan Rouhani sharply criticised U.S. military intervention in the Middle East on Monday as he began a first official visit to Iraq, aimed at shoring up Tehran’s influence and expanding trade ties.

The visit also sends a strong message to Washington and its regional allies that, in the face of U.S. sanctions, Iran still plays a dominant role inIraqi politics.

Prior to his departure, Rouhani said Shi’ite Iran was determined to strengthen brotherly ties with its neighbour, Iranian state television reported on Monday.

Those ties “cannot be compared to Iraq‘s relations with an occupying country like America, which is being hated in the region,” the semi-official Mehr news agency quoted him as saying before he left.

“One cannot forget the bombs that Americans dropped over Iraq, Syria and other regional countries.”

During the three-day visit a series of agreements will be signed in energy, transport, agriculture, industry and health, Iran’s state news agency IRNA said.

“We are very much interested to expand our ties … particularly our transport cooperation,” Rouhani said at Tehran’s Mehrabad airport.

He will visit a Shi’ite Muslim shrine in Baghdad’s Khadhimiya district prior to a welcome ceremony, the offices of Iraq‘s president and prime minister said.

A senior Iranian official accompanying Rouhani told Reuters that Iraq was “another channel for Iran to bypass America’s unjust sanctions … This trip will provide opportunities for Iran’s economy.”

The sharp downturn in Iran’s economy since U.S. President Donald Trump’s decision last May to pull out of a 2015 nuclear deal between Iran and six major powers has pushed the country’s leaders to try to expand trade ties with neighbours.

The agreement lifted sanctions that had been imposed by the United States, European Union and United Nations in return for Iran curbing aspects of its nuclear programme.

The Trump administration said the accord was too generous and failed to rein in Iran’s ballistic missile capabilities and its involvement in regional conflicts in Syria and Yemen.

Other signatories to the deal have been trying to salvage the pact, but U.S. sanctions have largely scared off European companies from doing business with Iran.

The Europeans have promised to help firms do business with Iran as long as it abides by the deal. Iran has itself threatened to pull out of the 2015 deal unless EU powers demonstrably protect its economic benefits.</s>Iran's Rouhani seeks to boost ties on first visit to Baghdad

BAGHDAD (AP) — Iranian President Hassan Rouhani arrived in Baghdad on Monday, making his first official visit to the nation that Tehran once fought a bloody war against and later backed in the battle with the Islamic State group.

Since Rouhani's election in 2013, Iraq has relied on Iranian paramilitary support to fight IS, following the militant group's capture of the Iraqi city of Mosul and other territory in both Iraq and Syria.

Now with the militants facing a final territorial defeat in the Syrian village of Baghouz, Iran is looking for Iraq's continued support as it faces a maximalist pressure campaign by President Donald Trump after his decision to withdraw America from Tehran's nuclear deal with world powers.

Rouhani, who is accompanied on the three-day visit by a high-ranking political and economic delegation, was received by an honor guard on landing in Baghdad, where he was welcomed by Iraqi Foreign Minister Mohammed Ali Al-Hakim.

He proceeded for a stop at a Shiite shrine in the Iraqi capital and was then to meet with both President Barham Salih and Prime Minister Abdel Abdul Mehdi, as well as visit other politicians and Shiite leaders.

Rouhani's visit underscores how much has changed since the 1980s, when Iraqi dictator Saddam Hussein invaded Iran, sparking an eight-year war that killed 1 million people. After the 2003 U.S.-led invasion of Iraq toppled Saddam, Iran began a campaign of backing militants who targeted American forces in Iraq.

Tehran also made political connections with Iraq's Shiite leaders, who had been persecuted by Saddam's government. Iran's former hard-line President Mahmoud Ahmadinejad became the first Iranian president to visit Iraq on a trip in 2008.

Iraq and Iran share a 1,400-kilometer-long (870 miles) border. Trump made a snap December trip to Iraq and made comments that U.S. forces should stay in Iraq to keep an eye on Iran, something dismissed by both Iran and Iraqi leaders, whom Trump did not meet on the visit.

Speaking at Tehran's Mehrabad Airport before leaving for Iraq, Rouhani's official website quoted him as saying the trip's goal was "deepening bilateral relations."

"Relations between Iran and Iraq are special," Rouhani was quoted as saying. "In the recent years, the people of Iran have passed a test with pride, and that is wherever the peoples of the region faced a problem and asked for the help of the Iranian nation and government, we rushed to help them."

Rouhani, who had visited Iraq privately before becoming president, had planned an official visit in 2016 but it was cancelled over unspecified "executive" problems.

This time, Rouhani, who is on a second four-year-term, is particularly vulnerable because of the economic crisis assailing the Iranian rial, which has hurt ordinary Iranians and emboldened critics to openly call for the president's ouster.

Tehran sees the U.S. military presence at its doorstep in Iraq as a threat — one that could also undermine Iran's influence over Baghdad.

Iranian Foreign Minister Mohammad Javad Zarif alluded to that on Sunday while in Baghdad, saying that any country which tries to interfere with the good Iran-Iraq relations would "be deprived of opportunities for itself."

Iran also sees Iraq as a possible route to bypass U.S. sanctions that Trump re-imposed last year after pulling the U.S. out of the 2015 nuclear deal.

Last year, Iran's exports to Iraq amounted to nearly $9 billion. Tehran hopes to increase the roughly $13 billion volume in trade between the two neighboring countries to $20 billion. Also, some 5 million religious tourists bring in nearly $5 billion a year as Iraqis and Iranians visit Shiite holy sites in the two countries.

Associated Press writer Nasser Karimi in Tehran, Iran, contributed to this report.</s>During the phone call, the two sides conferred on the latest developments in bilateral ties, and discussed arrangements for the upcoming visit of Iranian President Hassan Rouhani to Iraq.

Zarif's previous phone call with his Iraqi counterpart was made on March 2, which also included talks on making preparations for President Rouhani's upcoming visit.

Iranian President Hassan Rouhani is due to pay an official visit to Iraq on March 11 to further boost bilateral relations between the two neighboring countries. It will be Rouhani’s first visit to Iraq during his tenure.</s>(Hatha al-Youm | Iraq News )- Iraq, Iran agree to abolish visa feesFollowing talks with Iraqi Prime Minister Adil Abdul-Mahdi, Iranian President Hassan Rouhani told a joint press conference in Baghdad they have agreed to abolish visa fees between the two countries. “We agreed on developing and facilitating relations on the popular level. To that end, Iran announces it will not charge visa fees, and later the Iraqi side will announce that it will not charge visa fees,” Rouhani told reporters on Monday evening. “Under the current circumstances, the Iraqi side prefers for visas to remain between the two countries, but it accepts that no fees be charged for issuing visas on both sides. This is a step to facilitate relations between the peoples,” Rouhani added. Visa reform will be welcomed by many cross border travelers. Millions of Iranians visit Iraq’s holy Shiite shrines annually to commemorate major ceremonies, while Iraqis cross into Iran for healthcare, education, and business.Iranian President Hassan Rouhani (L) with Iraqi PM Adil Abdul-Mahdi in Baghdad, March 11, 2019. Photo: PMO------11.15 p.m.Could Iraqi financial transactions with Iran breach US sanctions?Iraq treads a narrow line on continued trade with Iran while conforming to at least some of the US sanctions on Tehran. Reforming its banking sector to better integrate with Iran could cross the line, however, a former Kurdish undersecretary to Iraq’s Ministry of Finance has warned.“In the banking sector, Iraq cannot deal with Iran. Even in the past years, we didn’t deal with each other,” Fazil Nabi told Rudaw. They have had to physically transport money across the border because there is no electronic connection between their respective banks, he said. The aim of increasing trade between the two countries to $20 billion, therefore, might not be achievable. “There have been times when we have owed money to Iran, and we have paid back in local [Iranian] currency rather than in dollars,” Nabi said. Although the US could “overlook” Iraq’s ongoing dealings with Iran over electricity and gas, financial services may be another matter. It is “very important” for the Iranians to establish banking ties with Iraq, “however, we are under the careful watch of America,” Nabi warned. “The people of Iraq, Iraqi officials have to act with precision with Iran. There could be dealing in some fields, but not some others. Because if, God forbid, Iraq violates the US sanctions on Iran, it is possible that Iraq will face a catastrophe larger than the one it is faring through currently,” he said. If American banks withdraw their support from Iraq’s Trade Bank (TBI), Iraq might not even be able to pay for imports, he added.------7.19 p.m.In numbers: Iran-Iraq trade relations Iran and Iraq share a border stretching 1,458 kilometers, heavy stakes in the region’s oil industry, and intimate political, religious, and historical ties. As a result, a deep and complex relationship in trade, tourism, and investment has taken root, which even US sanctions on Tehran has failed to break. Ahead of Iranian President Hassan Rouhani’s visit to Iraq on Monday, Hamid Hosseini, secretary general of Iran-Iraq Joint Chamber of Commerce, offered some figures on the depth of these economic ties. “We received one and a half million Iraqi tourists and we have already had two million tourists in the seven months of this [Iranian] year and we expect this figure to reach three million by the end of the year,” Hosseini told Iranian state TV, referring to Iranian year which begins March 21. “Out of this, 200-300,000 were health tourists who use the medical services in our country.” Hosseini said 19 million tons-worth of goods were exported to Iraq over the same period.“The worries of our exporters will be dealt with following the currency agreement and we hope this trend continues next year too,” he said. According to Hosseini, a 32-member private sector delegation is accompanying Rouhani to Iraq.“This trip will have very good result for the private sector,” he said. Iranian private sector engineering and technical projects in Iraq worth $7-8 billion were put on hold after the Islamic State group swept the country in the summer of 2014, Hosseini said. “We hope that on this trip a solution is found for them.”As many Iraqi professionals fled Iraq during the past 30 years of instability, war, and the destruction of infrastructure, Iran is in a position to invest long term and share its expertise, Hosseini said. Recent work to resolve banking issues between the two countries have already improved the flow of exports and trade, he added. -------6.42 p.m.Abdul-Mahdi and Rouhani talk trade, defense, oil Iraqi Prime Minister Adil Abdul-Mahdi and Iranian President Hassan Rouhani met for talks on Monday evening to discuss trade and defense issues – and the key matter of oil. The Iraqi PM hoped the visit would “contribute to developing ties between the two neighboring countries and peoples in all fields, strengthen security, stability, and prosperity for all the peoples of the region,” according to a readout from Abdul-Mahdi’s office. Their dialogue “included the continuation of cooperation in the field of counterterrorism, bolster efforts of security and stability, and it also discussed cooperation in the fields of economy, trade, and numerous mutual topics, at the forefront oil, agriculture, construction, investment, health, transportation, industrial areas and border crossings,” the readout added. Hassan Rouhani (L) and Iraqi PM Abdul-Mahdi shake hands during the Iranian president's visit to Baghdad, March 11, 2019. Photo: Prime Minister's Office------3:29 p.m.President Salih: Iraq lucky to have Iran as a neighborIraqi President Barham Salih received Iranian counterpart Hassan Rouhani at the Presidential Palace in Baghdad.“I told his Excellency, President Rouhani, that some people say Iraq is situated in a difficult geographical location with many rivalries and problems," Salih told reporters at a press conference.Iran, Iraq's largest neighbor, has enjoyed an ever-growing influence in Baghdad."But Iraq, on the other hand, is lucky to have Islamic neighbors — Iran and Turkey,” Salih added.The Presidential Guard of Iraq escorts Iranian President Hassan Rouhani (right) and Iraqi President Barham Salih in Baghdad on March 11, 2019. Photo: Iraqi PresidencyRouhani, who is making his first official visit to Iraq, enjoyed the warm reception.“I thank the people of Iraq for the warm welcome. While we in Iraq feel like we are in our second homeland because the relations connecting both countries and nations are not new,” Rouhani said.He touched on historic relations which should be built upon.“These relations date back to thousands of years from now – they are religious, cultural, historical and regional relations. And we will not abandon these relations. Rather, we should exert all our efforts to improve these relations,” Rouhani added.------10:58 a.m.Iran President Rouhani arrives in Iraq for 3-day visitBAGHDAD, Iraq — Iranian President Hassan Rouhani arrived in Baghdad on Monday morning for a three-day official visit accompanied by high-profile economic and political delegations with the aim of growing economic relations between the two neighbors.Rouhani is expected to hold talks with arrays of Iraqi officials including President Barham Salih, Prime Minister Adel Abdul-Mahdi, religious and tribal figures. “During very difficult times we were by the side of Iraqi people and today that Iraq is in peace and security, we will be by the Iraqi people’s side,” President Rouhani said at Mehrabad airport on Monday morning before leaving for Baghdad.The two sides are expected to ink several economic and trade agreements as Iraq emerges from over three years of brutal war against the Islamic State and in desperate need of rebuilding the areas devastated by the war. Iran was one of the first countries that came to the aid of the Iraqi government as jihadists advanced towards the Iraqi capital in June 2014.“Fortunately the Americans were unsuccessful almost in every effort against Iran over the last year,” Rouhani said, referring to the US government diplomacy since Washington walked away from the nuclear deal last May and re-imposed stringent sanctions targeting Iran’s energy, shipping and banking sector.Hassan Kazemi Qomi, a former Iran ambassador to Iraq, said in an interview that despite the US pressure on Iraq to cut off ties with Tehran, relations between the two countries are ‘strategic’ and Rouhani’s trip will advance them.“By taking into account the current situation in Iraq, the Islamic Republic of Iran could introduce a long-term program and a strategic cooperation plan at least for the next 25 years between the two countries," Kazemi Qomi told official Iranian agency IRNA. “However, there has to be a good framework to realise these aims and strategy.”Another issue that Rouhani is keen on discussing with Iraqi officials is to clean up strategic Shatt al-Arab waterway known as Arvand Rud in Iran to be used by ships to boost trade. Iran is interested in revising the 1975 agreement between the two countries which was scrapped by Saddam Hussein's regime in early 1980s as the two countries fought a bloody war.Rouhani is accompanied by Oil Minister Bijan Zangeneh and Foreign Minister Javad Zarif. Iranian officials hope to increase trade with its western neighbour from $12 billion to $20 billion in the coming years.Iraqi President Barham Salih told reporters on Sunday that the visit by Rouhani is to deepen relations between the two countries.Iran is Iraq's largest trading partner followed by Turkey. Relations between the two countries have been strengthened since the US invasion in 2003.This is a developing story...</s>BAGHDAD: Iranian President Hassan Rowhani arrived on Monday in the Iraqi capital Baghdad for his first visit to the neighbouring country since he took office in 2013. The three-day visit is aimed at bolstering ties between Iran and Iraq.

 It is Rouhani’s first visit to Baghdad. Prior to his departure he said Iran was determined to strengthen brotherly ties with its neighbour, Iranian state television reported on Monday.

 The visit will send a strong message to the United States and its allies that, in the face of US sanctions, Iran still plays a dominant role in Iraqi politics.

 During the three-day visit a series of agreements will be signed in energy, transport, agriculture, industry and health, Iran’s state news agency IRNA said. “We are very much interested to expand our ties … particularly our transport cooperation,” Rouhani said at Tehran’s Mehrabad airport.

 A senior Iranian official accompanying Rouhani told Reuters that Iraq was “another channel for Iran to bypass America’s sanctions…. This trip will provide opportunities for Iran’s economy.

 Trade between Iran and Iraq now stands at around $12 billion a year — tilted toward Iran with gas and energy exports — and Rouhani has said he would like to see it rise to $20 billion.

 The sharp downturn in Iran’s economy since US President Donald Trump’s decision last May to pull out of a 2015 nuclear deal between Iran and six major powers has pushed the country’s leaders to try to expand trade ties with neighbours. — Reuters
Iranian President Hassan Rouhani begins his first official visit to Iraq to boost bilateral ties and trade amid re-instated U.S. sanctions on Iran.