Farzad Piltan, who heads the West Asia Department at the Iranian Trade Promotion Organization (ITPO), announced on Tuesday that Tehran and Baghdad are in the process of developing various initiatives, which include the formation of a joint bank and a transportation firm, along with efforts towards establishing a free trade zone. 

"The establishment of joint organizations, including joint banks … a free trade zone and … a transport company is on the agenda. We hope these steps will facilitate the development of trade," Piltan was quoted as saying by the IRIB news agency.

Piltan revealed that Iran is aiming to achieve an annual trade volume of $20 billion with Iraq.

To accomplish this objective, the ITPO has made the decision to create new entities, including a "network of business centers."

Read more: Iran's exports to West Asia hit $7.2 billion in 4 months

Iran has over the past years moved forward toward expanding cooperation and ties with regional and non-regional countries in the fields of trade, politics, and security among other areas as well.

Back in June, Hojatollah Abdolmaleki, the secretary of the Iranian Supreme Council of Free Trade-Industrial and Special Economic Zones, informed Sputnik that Tehran is actively enhancing collaboration in the domain of special economic zones, including discussions with Saudi Arabia and the UAE.

Furthermore, they have already signed memorandums of understanding regarding this matter with Iraq, Syria, and Oman.

In January this year, Sputnik reported that Iran signed a landmark memorandum on free trade with the Eurasian Economic Union (EAEU).

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