Turkey-Iraq Trade Hits $6.08 Billion Despite Decline
At a Glance
- Turkish exports to Iraq reach $6.08 billion.
- Seven-month exports fall 7.8% year-on-year.
- July exports rise 15.5% to $1.11 billion.
- Iraq ranks fourth among Turkey's July markets.
Turkey's exports to Iraq reached $6.08 billion in the first seven months of 2026, down 7.8 percent from the same period last year, according to official figures.
Key Statements and Focus Area
- Seven-month trade: Iraq remained Turkey's seventh-largest export market globally, despite the year-on-year decline.
- July performance: Turkish exports to Iraq rose 15.5 percent in July to $1.11 billion.
- Market ranking: Iraq moved to fourth place among Turkey's export markets in July.
- Overall exports: Turkey's total exports rose 3.4 percent to $161.54 billion during the first seven months.
Seven-Month Exports Decline
Turkey exported $6.08 billion worth of goods to Iraq during the first seven months of 2026, compared with $6.59 billion during the same period in 2025.
The figures represent a 7.8 percent decline, although Iraq remained one of Turkey's largest export markets during the period.
July Trade Rebounds
On a monthly basis, Turkish exports to Iraq increased 15.5 percent in July, reaching $1.11 billion compared with $963.4 million in July 2025.
The increase moved Iraq to fourth place among Turkey's export markets for the month, behind Germany, the United States and the United Kingdom.
Turkey's Top Export Markets
Germany remained Turkey's largest export market during the first seven months, receiving $13.29 billion in Turkish goods.
The United States ranked second with $10.16 billion, followed by the United Kingdom at $9.43 billion and Italy at $8.35 billion. France and Spain ranked fifth and sixth, respectively.
| Indicator | Figure |
|---|---|
| Turkey's exports to Iraq, Jan-Jul 2026 | $6.08 billion |
| Change from Jan-Jul 2025 | -7.8% |
| Iraq exports, July 2026 | $1.11 billion |
| July year-on-year change | +15.5% |
| Iraq's global ranking, Jan-Jul | 7th |
| Iraq's ranking in July | 4th |
| Turkey's total exports, Jan-Jul | $161.54 billion |
| Turkey's total export growth | +3.4% |
FYI
The latest figures show that Turkey-Iraq trade remains substantial despite a decline in Turkish exports to Iraq during the first seven months of 2026. Turkey exported $12.38 billion worth of goods to Iraq in 2025, according to UN Comtrade data, while Turkish officials have set a longer-term target of raising bilateral trade to $30 billion annually.
The July rebound is particularly significant because it came after weaker trade earlier in the year. Iraq's position among Turkey's export markets had fallen to seventh in the first quarter, according to trade data, making the subsequent rise to fourth place in July a notable monthly improvement rather than evidence that the broader seven-month decline has been reversed.
Trade is also increasingly tied to wider infrastructure and energy cooperation between the two countries. The Development Road project is intended to connect Iraq's Al-Faw Grand Port with Turkey and onward markets through road and rail networks, potentially reducing transport times and strengthening Iraq's role as a regional transit route. Turkish and Iraqi officials have repeatedly presented the project as a means of expanding commercial ties beyond existing goods trade.
Energy is another major component of the relationship. In 2026, Iraq and Turkey moved to maintain and expand oil flows through the Iraq-Turkey Pipeline to Ceyhan, with the two sides also discussing broader cooperation covering oil, electricity and water. The pipeline currently carries substantially less than its stated capacity, leaving significant room for increased flows if the two countries reach longer-term arrangements.
For Iraq, stronger trade and transport links with Turkey could provide additional access to European and regional markets, while for Turkey, Iraq represents both a major consumer market and a potential transit corridor connecting the Gulf with Europe. The current export figures therefore reflect not only short-term changes in Turkish goods sales, but also a broader economic relationship whose future will depend on infrastructure development, energy agreements and the ability of both governments to translate planned projects into sustained trade growth.
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