SYDNEY -- An international scandal revealing Australia's role in the Iraq food-for-oil coverup is costing good will in Washington and could affect agricultural exports to the key Japanese market.

Dubbed Canberra's Wheatgate, a U.N. organization's revelation of double-dealing with Saddam Hussein's regime has already resulted in Australia's wheat exporter being banned from using U.S. credit programs.

Now the trader is losing markets in Iraq, where Australia is supporting coalition troops, while the new Baghdad government is demanding the return of millions of dollars in kickbacks.