Türkiye and Iraq are set to reaffirm positive ground in their relations with a series of upcoming visits that will come as the neighbors are engaged in the development of a multibillion-dollar regional transportation project designed to ease the movement of goods from Asia to Europe.
Iraq is Türkiye's key trade ally in the region, although the ties have been strained by a series of issues, including the presence of PKK terrorists in northern Iraq and Turkish military actions against the group on Iraqi territory. Baghdad says the operations are a violation of its sovereignty, but Ankara stresses they are needed to protect itself.
In April, President Recep Tayyip Erdoğan made his first official visit to Baghdad in over a decade, seeking cooperation in the battle against the PKK, which has maintained bases in northern Iraq's mountainous region, which is controlled by the semi-autonomous Kurdistan Regional Government (KRG).
Erdoğan’s visit resulted in the signing of numerous agreements in the areas of energy, trade and water sharing.
Two months later, the Iraqi government announced an official ban on the PKK.
Ankara has argued that PKK’s presence in Iraq threatens the planned construction of the proposed $20 billion Development Road Project.
The project is designed to facilitate the transport of goods from the Gulf to Europe via the Grand Faw Port in Basra in southern Iraq. The port would be linked to Türkiye and subsequently to Europe through an extensive network of railways and highways.
The initiative, which was unveiled last year, would turn Iraq into a pivotal transportation hub, enhancing the country’s economic resurgence and boosting cooperation with its neighbors.
A delegation led by the Turkish Contractors Association (TCA) is scheduled to visit Iraq next week to address the initiative and discuss the potential for new cooperation as Baghdad plans multiple new ambitious projects, according to Anadolu Agency (AA).
That is expected to be followed by a trip of Trade Minister Ömer Bolat, who will accompanied by contractors and business people. Bolat is scheduled to visit Baghdad and Basra.
Turkish contractors have already been heavily involved in Iraq.
According to Erdal Eren, head of the TCA, Iraq accounts for 6.8% of all projects builders had undertaken abroad from 1972 to the end of this September.
Projects worth approximately $35 billion make Iraq the third-largest market for Turkish contractors, which have undertaken 12,297 projects in 137 countries, valued at $515.8 billion, to date, according to Eren.
This year alone, Turkish contractors have undertaken 13 projects in Iraq worth $624 million.
"The Development Road Project, closely followed by Turkish firms, is expected to cost at least $17 billion. This project involves a 1,200-kilometer (745.65-mile) railway and a parallel highway stretching from the Faw Port in Basra to the Turkish border," said Eren.
In addition, Iraq is moving forward with several other large-scale infrastructure projects.
These include the $17.5 billion Baghdad Metro Project, the $2 billion Baghdad Ring Road Project, and plans to build nearly 100 hospitals, over 3,000 schools, approximately 4 million new housing units, and numerous irrigation projects, according to Eren.
"Iraq is a market with an estimated $5 billion worth of project opportunities annually," he noted.
He expressed Turkish builders' hope for concrete steps on all these ambitious projects during the upcoming visits on Oct. 15-17 and Nov. 18-19.
Iraq, meanwhile, remains one of Türkiye's top trading partners.
Exports to Iraq amounted to $8.4 billion in the first eight months of this year, while imports totaled $1.1 billion, according to the Turkish Statistical Institute (TurkStat).
That marks an increase from last year's $7.7 billion and $876 million, respectively.
In 2023, the total trade volume between the two countries totaled $14.3 billion, with $12.8 billion in Türkiye's exports.