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Iraq-Jordan
Iraq rejects Aussie wheat
2005-04-27
Australian wheat bound for Iraq has been unloaded in Kuwait as a growing dispute over its quality threatens a major wheat market.

Two loads of wheat have had to be left at Kuwait because the ships are needed elsewhere, while another three ships with Australian wheat are sitting off the Iraq coast waiting to unload.

Up to 250,000 tonnes of wheat is being held up following claims by Iraq that the shipment is contaminated with iron filings.

A spokesman for Australia's monopoly wheat exporter AWB Ltd said the company has tested the wheat and found it uncontaminated and of very high quality.

He said AWB is hoping for a breakthrough in coming days that will clear the way for the wheat in both Kuwait and aboard the ships to be delivered to Iraq.

"We're still working through these issues with the customer," the spokesman told AAP.

"The wheat has been tested and that shows it is uncontaminated and of the best quality."

The issue erupted last week when the director general of the Iraqi Grain Board, Khalil Assi, said his country had suspended talks with Australia over a 500,000 tonne contract potentially worth more than $500 million.

He also claimed Australian wheat had been contaminated.

The comments were made during a trip to the United States, which is hoping to win a major share of the valuable Iraqi wheat contracts.

The Australian wheat at the centre of the dispute has already been paid for by Iraq.

Opposition agriculture spokesman Gavan O'Connor said it appeared the issue was being driven by pressure from the US, rather than any genuine concern over the quality of Australian wheat.

"The Howard government cannot allow our hard-earned reputation as a reliable supplier of quality wheat to Iraq to be undermined as a result of pressure from the Americans or anybody else," he said.

"This issue cannot be allowed to drag on like so many others have in this portfolio area in the past."

Australia has written to the Iraqi interim government in a bid to end the stand-off, while AWB officials are working in the Middle East to find a solution.

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