The MoU was inked by officials of Iran's Chamber of Commerce, Industries and Mines (ICCIM) and an Iraqi delegation in Iran's western province of Ilam.
An 11-man Iraqi trade delegation launched a three-day tour of Iran on Friday to attend business discussions with Iranian officials.
Speaking at a special ceremony for inking the MoU, Deputy Head of Ilam's Chamber of Commerce Sh'aban Foroutan underlined that the agreement is aimed at removing trade problems and promoting exports.
The official underlined that the necessary ground was prepared for the expansion of province-to-province trade, including Iran's western province of Ilam with Baghdad.
Commenting upon the Iraqi delegation's visit to Ilam, Foroutan stated that the visit will pave the way for export promotion and job creation as well.
Iran and Iraq enjoy good economic ties. Only the Mehran border crossing each day witnesses 700 trucks carrying Iran's non-oil exports to Iraq.