Australian-Iraqi relations

Australian-Iraqi relations

Introduction

Contemporary Australian-Iraqi relations have been shaped by Australia’s involvement in the 2003 invasion, subsequent occupation, and support for the newly formed Iraqi government in the form of military assistance, training and aid. Another key issue in the Australian-Iraqi relationship relates to the Iraqi import of Australian wheat and the finding of the Volcker and Cole Inquiries that the Australian Wheat Board (AWB) breached the United Nations oil-for-food programme by paying millions of dollars in kickbacks to the Saddam Hussein regime. The trade relationship – which was almost entirely based around the import of Australian wheat – was further complicated by Iraqi allegations of contaminations in Australian wheat and the 2006 shooting of Iraqi trade minister security personnel by the Baghdad based Australian security detachment.

For more information concerning Australian-Iraqi wheat trade and the AWB issue see: Australian wheat export and Iraq

Government sources

Iraq Fact Sheet, Department of Foreign Affairs and Trade, September 2007.

Australia's merchandise trade with Iraq

Visit by Iraqi Agriculture Minister to Australia, Joint Media Release: Minister for Foreign Affairs Alexander Downer and the Minister for Trade Mark Vaile, 4 November 2003.

“‘We warmly welcome the visit to Australia this week of Dr Abdul Amir Al-Abood, the interim Minister for Agriculture, who will be accompanied by Mr Nasir Al-Chadirchi, member of the Iraqi Governing Council
Dr Al-Abood is visiting Australia at the invitation of the Australian Government to familiarise himself with Australian agricultural policies and industry capabilities. Dr Al-Abood’s visit will enable him to meet with key Australian policy-makers and agriculture producers, and visit a range of agricultural production facilities. Australia is making a strong contribution to the rehabilitation of the Iraqi agriculture sector, which has been degraded and mismanaged for the last 20 years. Our agricultural advisory team, ably led by Trevor Flugge, is working closely with Dr Al-Abood, to rebuild this vital sector. Australian companies SAGRIC and CSIRO are core members of an international team that has won a recent USAID contract to revitalise this key element of Iraq’s economy.”

Analysis and commentary

Maliki calls for expanding cooperation with Australia, Voices of Iraq, Baghdad, 23 April 2007.

“Iraq’s Prime Minister Nouri al-Maliki on Saturday called for expanding cooperation with Australia in various domains during a meeting with the visiting Defense Minister Brendan Nelson, Maliki’s office said.

“Iraqi Prime Minister Nouri al-Maliki met with visiting Australian Defense Minister Brendan Nelson and called for more cooperation between the two countries in economic, commercial and reconstruction domai”ns,” Maliki’s office said in a statement received by the independent news agency Voices of Iraq (VOI).

 

Visit by Iraqi Agriculture Minister to Australia, Joint Media Release: Minister for Foreign Affairs Alexander Downer and the Minister for Trade Mark Vaile, 4 November 2003.

 

“We warmly welcome the visit to Australia this week of Dr Abdul Amir Al-Abood, the interim Minister for Agriculture, who will be accompanied by Mr Nasir Al-Chadirchi, member of the Iraqi Governing Council.

Dr Al-Abood is visiting Australia at the invitation of the Australian Government to familiarise himself with Australian agricultural policies and industry capabilities. Dr Al-Abood’s visit will enable him to meet with key Australian policy-makers and agriculture producers, and visit a range of agricultural production facilities.

Australia is making a strong contribution to the rehabilitation of the Iraqi agriculture sector, which has been degraded and mismanaged for the last 20 years. Our agricultural advisory team, ably led by Trevor Flugge, is working closely with Dr Al-Abood, to rebuild this vital sector. Australian companies SAGRIC and CSIRO are core members of an international team that has won a recent USAID contract to revitalise this key element of Iraq’s economy.”

 

Trade / economic relations

Australia: Iraq wants to resume wheat trade, Iraq Directory, 20 September 2007

“A spokesman of the Australian foundation A.W.P for wheat trade said on Thursday that Iraq is negotiating to resume buying wheat from this foundation that monopoly the Australian wheat export, after the cessation of transactions between the two sides last year.

Iraq suspended transactions with the foundation in February 2006 after the start of a judicial inquiry in the Australian scandal concerning the payment of bribes worth $ 222 million by the foundation to the Iraqi government in the era of former President Saddam Hussein to ensure the conclusion of deals.

Peter McBride, spokesman of the foundation, said on Thursday, “We had preliminary discussions with the Iraqis. We are happy to contact the Iraqi grain board to consider the chances of resuming exports of wheat in future.”

Reports quoted the Iraqi Trade Minister, Abdul Al-Falah Al-Sudani, saying in Baghdad on Tuesday that Iraq had begun talks with the Australian foundation on the purchase of large quantities of hard wheat. But he did not specify the quantity which Iraq wants to purchase.

However, the Australian wheat is limited after drought reduced crop size of the country for 2006 -2,007 by 60% to less than ten million tons.

McBride said this week that the last production of Australian wheat harvest has been sold or earmarked for sale or has been shipped or its prices are set. He added about the possibility of resuming exports to Iraq, “It is all about the future.”

Australian exports from the last crop were distributed according to the quota system on older buyers, and they are likely to be lower than the demand for this season, also because of shrinking crop for 2007-2008 due to a new wave of drought.

Last year, Iraq bought most of its wheat imports from the United States. Before the eruption of the bribery scandal, Australia used to export to Iraq up to 2.5 million tons annually. Iraq imports each year more than three million tons of wheat.

Last December a new group named “Wheat Australia” got a special authorization from the Australian government for the export of 300 thousand tons of wheat to Iraq but it could not negotiate for sales again.”

 

Iraq to resume trade ties with Australia, The Australian, 1 March 2007.

“IRAQ will resume trade ties with Australia after families of Iraqi bodyguards shot by Australian security men by mistake last year accepted compensation from Australia, a statement quoting the trade minister said. Minister Abdul Falah al-Sudany said he had accepted an invitation to visit Australia to “turn the page of the past” and discuss new tenders.”

Ministry of Trade Reconsiders Relations with Australia, Al Sabah newspaper, Baghdad, 15 July 2006.

“A trade crisis of a different kind is brewing between the Iraqi Ministry of Trade and the Australian government over a shootout in Baghdad some weeks ago, during which an Australian soldier killed a Trade Ministry guard. The Ministry of Trade asked for an apology and compensation, which the Australians have thus far refused to give. The Trade Ministry has countered by threatening to cancel all trade relations with Australia putting a lucrative wheat purchase from Sydney in jeopardy.”