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June 22nd, 2006, 09:52 GMT · By Ruxandra Adam

Australia-Iraq Trade Ties are Under Pressure

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As if things were not tense enough in Iraq, the shooting mishap involving the Australian troops, which killed a bodyguard of the Iraqi Trade Minister, by mistake, and wounded three others yesterday, has put diplomatic ties between the two under a lot of additional pressure. The shooting occurred outside the Trade Minister's residence. Police forces stated that the Australians had mistaken the bodyguards for insurgents and fired.



The Iraqi Trade Minister, Abdul Falah al-Sudany, made an official announcement on Thursday in Baghdad, stating that he would reconsider all trade deals with Australia, especially regarding wheat, of which the latter is a supplier, should the Australian government not officially acknowledge the mistake.

The announcement was made during an interview with Reuters news agency by spokesman Muhammed Hnoun: "The minister holds the Australian government responsible and demands an apology and payment of compensation. If this does not happen he will reconsider trade agreements between the two countries. Iraqi blood is more important than anything else".

The announcement comes in highly delicate circumstances, just as Australia was trying to renew million of dollars worth of wheat deals with Iraq, which lists among the largest wheat buyers in the world. The Australian government replied that it had not been informed of such an event and of the fact that wheat shipments would be reconsidered.

In an effort to reach peace, the Australian ambassador in Baghdad telephoned the Iraqi Trade Minister and offered him his condolences, apologizing for the shooting. Moreover, the Vice Chief of the Australian Defense Forces, Lieutenant General Ken Gillespie issued an official address stating: "The ADF deeply regrets the injuries and loss of life that has occurred. As with all ADF incidents of this nature, the matter will be formally and fully investigated".

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