September 26, 2006

Iraq, Australia near resolving wheat trade issues

Iraq may be able to begin buying Australian wheat soon because the two countries are close to coming to terms on a scandal that prompted Iraq to stop importing from Australia's AWB Ltd in February, Iraqi Trade Minister Abdul Falah al-Sudani said Monday (Sep 25).

Iraq stopped buying from AWB in the wake of an investigation into alleged kickbacks paid to Saddam Hussein's regime in return for wheat purchases under the United Nation's oil-for-food programme.

Al-Sudani told reporters here Monday he believes the two countries can get beyond that "problem". He added that it will be resolved soon and Iraq will resume buying from Australia.

But Iraq is also increasingly able to rely on domestic wheat production. Al-Sudani said wheat production there has more than doubled to about 1 million tonnes this year.

Meanwhile, if US industry was hoping for an announcement of a wheat purchase during al-Sudani's visit to the US, it is not going to get it Monday. Al-Sudani told reporters he would make no such announcement.

Other members of the Iraqi trade delegation with whom he is travelling will leave Washington and head to Kansas City, but al-Sudani will not accompany them.

Alan Tracy, president of the US Wheat Association, said Monday that Iraq still has "big import needs" and that US exporters can "expect to compete with the Australians".