By Mohammed Abbas and Wisam Mohammed
BAGHDAD (Reuters) - Turkish Prime Minister Tayyip Erdoganpledged on Thursday to strengthen security and economic tieswith Iraq and urged the region to do more to help the Baghdadgovernment rebuild after years of war.
Erdogan, the first Turkish leader to visit Iraq since theU.S.-led invasion in 2003, said both Baghdad and Ankara wantedto form a "security area that would eliminate terrorist threatsbetween the two countries".
Relations have often been strained by Kurdish PKK rebelswho use northern Iraq to launch attacks into neighbouringTurkey.
"With regards to the terrorism of the PKK, we receivedsupport from the Iraqi government ... and the regionalKurdistan government in northern Iraq," Erdogan said at a newsconference in remarks translated from Turkish into Arabic.
The Kurdistan Workers Party (PKK), which wants to establishan ethnic homeland in southeast Turkey, uses parts of northernIraq as a base to stage attacks inside Turkey.
The two leaders signed an agreement to form a council for"strategic cooperation", although it was not immediately clearif any joint measures had been agreed to tackle the PKK.
"This is a historic visit ... The time is right for Turkeyand Iraq to have developed relations," Iraqi Prime MinisterNuri al-Maliki said at the news conference with Erdogan.
Erdogan's trip is another sign the region is starting tore-engage with Iraq, where violence is at a four-year low.
"We must all help our Iraqi brothers with thereconstruction of Iraq," Erdogan said.
"I say to our neighbouring friends in the region, thefuture of Iraq is our future. We must increase our support."
Kuwait said on Thursday it planned to name an ambassador toIraq soon because security had improved enough to allow thereopening of an embassy.
That follows a flurry of diplomatic activity from otherGulf Arab states. Jordan's King Abdullah is also expected tovisit Baghdad soon.
No Arab ambassador has been stationed in Iraq since Egypt'senvoy was kidnapped and killed shortly after arriving in 2005.
GROUND OFFENSIVE
Turkey's operations in Iraq's largely autonomous Kurdistanregion often draw protests from Baghdad. Ankara for its parthas been highly critical of Baghdad's failure to deal with theseveral thousands of guerrillas holed up in the north.
Iraqi officials say the government has taken some measures,while noting it has major security challenges elsewhere.
Turkey's military launched a big ground offensive againstthe PKK inside northern Iraq in February, prompting concern inWashington about regional instability.
Ankara blames the PKK for 40,000 deaths since 1984 when thegroup took up arms. Like the United States and the EuropeanUnion, Turkey considers the group a terrorist organisation.
Last September, Turkish and Iraqi officials signed ananti-terrorism deal in Ankara to tackle the PKK, although thetwo sides failed to agree on any border security cooperation.
Erdogan's visit also focused on economic links.
Maliki said he hoped Turkish firms would play a major rolein rebuilding Iraq after decades of war and sanctions.
"Our success in challenging terror and outlaws has allowedus to move to the reconstruction and investment phase," hesaid.
Turkey is already one of Iraq's most important tradingpartners. Turkish firms and products dominate northern Iraq'seconomy, and Turkish state energy firm TPAO is in oilexploration talks.
Exports of oil from Iraq's northern Kirkuk fields flowthrough a pipeline to the Turkish port of Ceyhan on theMediterranean. There are also plans for a natural gas link.
Turkey's trade minister has said bilateral trade betweenthe two countries was targeted to reach $20 billion (10 billionpounds) within two years, compared with more than $3.5 billionin 2007 and $940 million in 2003. Contracts won by Turkishconstruction firms in Iraq in 2007 topped $4 billion.
