BAGHDAD, June 22: Iraq’s trade minister threatened on Thursday to reconsider trade deals with wheat supplier Australia after Australian troops killed one of his bodyguards in a shooting incident in the capital.

The Australian government is trying to negotiate new wheat deals worth hundreds of millions of dollars with Iraq, whose state rations body is one of the world’s biggest wheat buyers.

The shooting took place outside the minister’s office in lawless Baghdad, where daily killings continue unabated, despite a security crackdown by the new national unity government.

The Australian Defence Force confirmed its soldiers had opened fire on bodyguards of Trade Minister Abdul Falah al-Sudany in Baghdad on Wednesday, killing one and wounding three people.

“The minister holds the Australian government responsible and demands an apology and payment of compensation. If this does not happen he will reconsider trade agreements between the two countries,” his spokesman Muhammed Hanoun said.

“Iraqi blood is more important than anything else,” he said.

Australia said it was proceeding with wheat shipments to Iraq from a recent sale and had not been informed of Baghdad’s threat to reconsider trade.

Australia’s ambassador telephoned the trade minister to offer his apology and condolences for the shooting, but Hanoun said the minister would not be satisfied until Australian Prime Minister John Howard had personally apologised.—Reuters