From the ABC

Govt unconcerned by Iraq wheat deal failure reports
The Federal Government says it does not believe a wheat deal with Iraq is on the verge of collapse, after media reports cited unnamed sources saying it had stalled after two months of negotiations.

The sources say Wheat Australia will probably make an announcement regarding the 350,000 tonne sale, worth about $90 million, on Monday.

Wheat Australia started negotiating the wheat sale after Iraq banned trade with monopoly exporter AWB, while the Cole inquiry investigates the oil-for-food scandal.

Deputy Prime Minister Mark Vaile flew to Baghdad earlier this year to convince Iraqis to continue buying wheat from Australia, following revelations of kickbacks paid by AWB.

Federal Agriculture Minister Peter McGauran says he believes the tender that Mr Vaile helped negotiate is still on track.

He says if the deal does not proceed, it would be because of commercial differences.

"This is a commercial deal between private operators in Australia and the Iraqi government," he said.

"We'll do everything we can to create the environment of co-operation to bring it to a successful conclusion because it would be to the great advantage of Australian growers, but the Australian Government's role is necessarily limited."

Mr Vaile announced the success of his trip to Baghdad at a rally of around 400 farmers in the New South Wales central-west in March.

Mr Vaile told them they would have continued access to the Iraq market.

"The taxpayers paying for me to go to look after your interests in the Iraqi market today, tomorrow and into the future was not a wasted trip - it wasn't to no avail," he said.

"We've secured our position in that market into the future and overnight the Iraqi ministers have confirmed thus.

Prime Minister John Howard hailed the deal as an outstanding result.

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Outstanding result especially after having bribed Saddam in the oil for food program...