Australia has resumed wheat exports to Iraq, ending years of trade blockages over illicit payments to the past government of Saddam Hussein, with a global commodities trader loading a ship for first delivery. Australia, a strong supporter of reconstruction in Iraq and among the first to commit troops there, has been keen to regain its position as the country's major wheat supplier.
Swiss trader Glencore was loading the first 50,000-tonne shipment on Tuesday in a total deal for 250,000 tonnes, and negotiating further sales, trade sources said. At current Australian wheat cash prices of over A$400 a tonne, the deal would be worth well over A$100 million ($93 million).
The deal signals a return to normal ties between Iraq and Australian wheat exporters, after the falling out over the bribery allegations. "It's a big win for Australian wheat growers," Australian Agriculture Minister Tony Burke said on Tuesday. Iraq suspended wheat purchases from Australia in 2006 over monopoly exporter AWB Ltd paying $222 million in kickbacks to Saddam's government to secure sales.
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