Australia and the US are to kick off talks on a long-stalled free trade agreement, as Washington starts to corral allies into backing action against Iraq.

The discussions on a bilateral agreement are separate from the World Trade Organisation talks currently under way in Sydney and beset by angry protesters.

For years efforts to get a trade deal have foundered on resistance from the US's powerful farm lobby.

But the need to get key allies on board has been seen as adding urgency to the talks.

Earlier this week several US farming lobby groups dropped opposition to a deal.

Allowing for the 90-day notice the White House must give the US Congress before entering trade negotiations, that means talks could kick off as early as February 2003.

Politics and economics

The US is the second-ranking destination, after Japan, for Australian exports.

The US also provides 20% of Australian imports.

A free trade deal, Prime Minister John Howard said, could boost the economy by more than A$4bn (US$2.2bn; �1.4bn) a year.

Among the main sticking points are strong quarantine rules in place in Australia, as well as a recent boost to US farming subsidies.

But the US is hoping that it can extract valuable concessions on telecoms and TV market access.

And Australia's role as one of the most vocal backers of President George W Bush's so-called "war on terror" has strengthened its hand.

As many as 90 Australians died in the Bali bombing last month.

"I see this agreement as a building block to a stronger economic and political relationship," said Robert Zoellick, the US Trade Representative.