Fed: Downer not too concerned about loss of wheat contracts

AAP General News (Australia)
08-07-2006
Fed: Downer not too concerned about loss of wheat contracts

CANBERRA, Aug 7 AAP - Foreign Minister Alexander Downer has played down the loss of
Australian wheat contracts with Iraq following the AWB kickbacks scandal.

A US Department of Agriculture report says American farmers have won 72 per cent of
the country's market share for wheat over the past year - displacing Australia's position
as the key wheat exporter to Iraq.

Embattled monopoly wheat exporter AWB remains locked out of the lucrative market, with
Iraq maintaining its trading ban on AWB while the company faces an inquiry into the kickbacks
it paid to Saddam Hussein's former regime.

Mr Downer said today he was "not sure about the accuracy of the figures", but he had
anticipated Australia would lose some share of the Iraqi wheat market.

He was more upbeat about the opening up of Iraq's wheat trading environment.

"I've not checked (the figures) myself but we've obviously lost some share of that
market," Mr Downer told Sky News.

"That was a given. The United States didn't export into the Iraqi market during Saddam
Hussein's time.

"I've been reasonably satisfied that the market has been opened up to international
competition in a fair and reasonable way.

"Inevitably it's going to ebb and flow in terms of who wins contracts at particular times."

AAP dcr/sb/apm/jlw

KEYWORD: IRAQ WHEAT DOWNER

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