"We have agreed to create a free trade zone between the two countries, which will enable us to launch joint ventures," Rouhani said at a press conference held after the meeting, as broadcast by Press TV.
Rouhani added that while the Iranian-Iraqi trade currently amounted to around $12 billion, it could be raised to $20 billion in near future if both sides made an effort.
READ MORE: Iraq May Ask US to Stop Sanctioning State Over Ties With Iran — Foreign Ministry
Earlier in the day, Rouhani and Salih held a meeting in the Iranian capital of Tehran, during which they discussed bilateral cooperation and regional development.
According to Brian Hook, the special representative for Iran at the US State Department, the Iraqi government is cooperating with the United States on increasing Iraqi oil production and reducing Iranian influence.