August 8, 2006

Iraq asks AWB to compensate contaminated wheat

Iraq has asked Australia's AWB Ltd to compensate it for 420,000 tonnes of hard wheat that Baghdad had alleged last year was contaminated with iron dust, a statement by the Iraqi trade ministry said Monday (Aug 7).

The statement also said that the AWB has agreed in principle to compensate Iraq for that amount in condition that Baghdad resumes wheat purchases from the Australian wheat monopoly.

"An Iraqi trade delegation met with representatives from the AWB in Cairo recently and they discussed the possibility of resuming wheat purchases from the AWB," the statement said.

"The Iraqi delegation set a condition for resuming wheat purchase from the AWB that it should compensate Iraq for 420,000 tonnes of contaminated wheat that was shipped to Iraq last year," it said.

"The AWB has expressed its readiness to compensate that amount, providing the ministry agrees to conclude new wheat purchases," the statement, issued by a spokesman of the Iraqi Trade Ministry, said.