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Iranian goods in Iraq: Available alternatives, but replacement costs challenge markets

Iranian products are widespread in Iraqi markets, supported by their lower prices and geographic proximity. Traders and consumers say that quickly replacing them with Iraqi, Turkish and Arab goods could raise costs, despite the availability of local alternatives and imports from other countries.

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Iranian goods in Iraq: Available alternatives, but replacement costs challenge markets

Mustafa, who runs a grocery shop in Iraq, estimated that about 70% of his dairy products come from Iran, underscoring the presence of Iranian goods in the market. The escalation of tensions and the ongoing war in the region have raised questions about the cost of replacing them with Iraqi products or imports from other countries.

Iranian products sold in Iraqi markets include dairy products, meat, vegetables, fruit, canned goods and household items, benefiting from low prices and the proximity of their sources. Traders and consumers say that replacing them quickly could raise costs, while Iraqi, Turkish and Arab alternatives could make up the shortfall if local production expands.

Price gap supports demand

Mustafa said Turkish dairy products and alternatives from other countries are available, but more expensive, adding that the price difference can reach several times the cost for some products. He said Iranian meat is cheaper than its Turkish counterpart, while some consumers also trust that it complies with halal slaughter requirements.

He noted that good-quality Iraqi products are available and could serve as alternatives, but they are not found in markets in the same quantities or with the same reach as Iranian goods.

Tariq, an Iraqi citizen, said price is a major factor behind continued demand for Iranian products, which he said offer an acceptable level of quality at prices suited to the purchasing power of some Iraqis. He added that Iraqi, Turkish and Egyptian alternatives are available, but the combination of affordable prices and acceptable quality currently makes it difficult to do without Iranian products.

Chinese, Arab and Turkish alternatives

The trader Adel Abu Karim said Iranian products are present across various sectors of the Iraqi market, from food to industrial and household goods, attributing their spread to their low prices relative to their quality.

Abu Karim said China could supply large quantities to make up for any shortfall, while quality considerations leave room for Saudi, Jordanian and Turkish products to serve as alternatives to Iranian goods.

The prevalence of Iranian products varies across Iraq. Omar, an Iraqi citizen, said they are more widely available in areas near the Iranian border and less prevalent elsewhere, calling for greater reliance on Iraqi products and stronger support for national industry over the long term.

Local production among replacement options

Umm Aya, an Iraqi citizen, said the market could cope with any potential shortage of Iranian products through local industry or imports from other countries. She noted that limited support had constrained the ability of Iraqi products to develop and gain market share.

The market will not depend solely on Iran

Ahmed, an Iraqi citizen, said Iraqi food products had begun to gain a stronger presence as dairy and food factories came into operation. He said continued support for industry could help make up for any shortfall in imported goods. He added that, in his view, Iraqi products available in the market are no worse than their Iranian or Turkish counterparts in terms of quality and price.

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