Trade Minister Mark Vaile said Australia's two billion dollars (1.2 billion a year trade ties to the United Arab Emirates would be strengthened by a free trade agreement between the two countries.

"We could see some very, very strong benefits flowing from a prospective free trade arrangement with the United Arab Emirates," Vaile told Network Ten television.

There was no evidence so far of a reduction in the eight billion dollars (4.8 billion US) of goods and services Australia exports to the Middle East annually, he said.

But a trade delegation would be sent to the region later this year to shore up trade ties and establish diplomatic trade posts in Iraq and Kuwait, he said.

Vaile also said Australia had received a positive reception in Iran, a market of interest to Australian mining companies.

He pressed Australia's case for it taking charge of agriculture in Iraq as part of a transitional government being set up with the United States and Britain.

"We have a significant relationship with the region and expertise in agriculture and we see that we can be of great benefit with our expertise and technical capacity in assisting the Iraqis get agricultural industries up and running," he said.

Australia exports 800 million dollars (480 million US) worth of wheat annually to Iraq, more than any other country.

It contributed 2,000 troops to the US-led campaign in Iraq.

SPACE.WIRE