Iraq's booming liquor trade with Iran is a consequence of the divergence between the two countries' laws. Alcohol is banned inside the Islamic Republic of Iran. It is perfectly legal in secular Iraq, even if most Iraqis avoid it for religious reasons.
Not only is liquor legal in Iraq, it is untaxed and inexpensive. Stores sell liter bottles of Johnny Walker Red Label for just $10. In Iran, the same bottle commands at least five times the price, people here say.