Trade issues are expected to be high on the agenda when Prime Minister John Howard visits Bush's Texas ranch early next month to discuss the post-war Iraq.

Howard has been urged by Australian businesses to seek assurances US firms will not receive preferential treatment on rebuilding contracts and issue a "hands off" to US farmers intent on taking a share of Australia's lucrative wheat market in Iraq.

Howard said earlier this month that his government's approach to reconstruction would proceed "with a very clear eye to Iraq's long-term future, but also to our national interest in terms of peace and security and commercial interests".

Trade Minister Kark Vaile was more blunt.

"We are prepared to compete with the Americans," he said. "When there is an interim administration established, and then ultimately an Iraqi administration, we just expect to see a fairly operating market."

Australia was one of three nations to commit troops to the US-led war on Iraq, sending a force of 2,000 in the face of often strident public opposition.

With victory secured and the role of the United Nations in the rebuilding process still unclear, US Commerce Secretary Donald Evans said all coalition countries should be able to play a role in rebuilding Iraq.

But opposition trade spokesman Craig Emerson said it was clear Australia would face an uphill battle to win Iraqi contracts over US rivals.

The main bone of contention is Australia's 800 million dollar (480 million a year wheat export market in Iraq, which Australia argues US growers are muscling in on under the guise of providing aid.

"We have been concerned about the US's use of a mixture of aid and commercial services to break into new markets," Agriculture Minister Warren Truss said. "We would expect the US to respect the markets that we have in Iraq."

Alan Tracy, president of American wheat lobby US Wheat Associates, was unrepentant, promising the Australians a tough battle in the Iraqi market.

"When that time comes, hopefully sooner rather than later, the US will cede the market to no one," he said.

"The Australians have forgotten that Iraq was one of America's top markets before we led the efforts to kick Saddam out of Kuwait."

But New South Wales state Agriculture Minister Ian Macdonald disputed the claim , saying the Howard government had to ensure Australian interests were protected.

"Australian wheat growers have been exporting to Iraq for more than 50 years. They have put a lot of effort into building and securing a significant market for their wheat in Iraq and the Gulf region," he said.

"The US has never exported significant quantities of wheat to Iraq but undoubtedly there will be pressure from the US farm lobby to get American wheat into Iraq."

Vaile said he expected a level playing field for more than 200 firms that have already lodged expressions of interest with aid agency AusAid for war rebuilding in Iraq, many in the construction and oil industries.

Australia has said it wants responsibility for Iraqi agriculture under the transitional authority being set up by the coalition partners, which would place it in a powerful position to protect its markets.

SPACE.WIRE