The Iranian Trade Minister, Mohammed Shariatmadari, is in Baghdad for talks to boost bilateral trade under Iraq's oil-for-food deal with the United Nations.

The Iraqi news agency, INA, said Mr Shariatmadari would also attend the opening of the Baghdad International Trade Fair, scheduled to start at the weekend.

Ties between the two former foes improved in July when Iraq allowed thousands of Iranian pilgrims to visit Shi'a holy shrines in the country.