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The transfer of Iraq's energy sources would be via Turkey, Gul was reported as saying by broadcaster NTV.
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Trade between two countries has grown substantially since the intensity of the war in Iraq eased.ÂIraq sells oil to its neighbor, while Turkey exported domestic goods, cement and foods totaling $4 billion in 2008 to northern Iraq.
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The parties would assess bilateral relations as well as regional and international matters. "A comprehensive Economic Partnership Agreement will be signed during the visit," Gul’s office has earlier said in a statement.
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TERROR ISSUEThe PKK must lay down its arms or leave Iraq, Talabani told a joint news conference with visiting Gul, Reuters reported.
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Turkey expects important results to emerge from the visit, Gul had said ahead of his arrival in Baghdad for meetings likely to focus on the terrorist PKK organization.
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"Kurds should understand the importance of Turkey," Gul told reporters en route to Iraq, adding that the visit was a major gesture revealing Turkey's support to its neighbor.
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Gul is the first Turkish head of state to visit neighboring Iraq in 33 years. The last was by former president, Fahri Koruturk, in 1976.
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Talabani paid a two-day visit to Ankara a year ago, his first to Turkey as head of state, when he and Gul pledged to cooperate in attempts to oust members of the terrorist PKK organization, which has established bases in northern Iraq.
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All parties should do their utmost in terms of the fight against terrorism, Gul also said. "The regional administration in northern Iraq should take the necessary steps regarding the PKK issue," he added.
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Gul also said the Kurdish conference, planned to take place in the northern Iraqi city of Arbil, was an "important step".
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While in Istanbul last week for the 5th World Water Forum, Talabani had called on Ankara to consider a general amnesty for members of the PKK, in coordination with a call to lay down arms, aimed at boosting efforts to end the armed struggle.Â
Prime Minister Tayyip Erdogan welcomed the Iraqi president's good will regarding terrorism and said Turkey would view positively efforts to find a solution to the terror problem.
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Turkey stepped up its cross-border operations into Iraq in 2008, and accused Iraq of failing to stop PKK members from using bases in the region, which hinder Ankara’s desire for closer ties and economic operation with Baghdad.ÂÂ
RELATIONS BOOSTÂ
The two countries have however more recently pledged to work together to build security and economic ties and hopes of better cooperation improved after Iraq, Turkey and the United States agreed in November to form a joint committee to work on the problem.
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Last July, Erdogan visited Baghdad for talks with Maliki about greater cooperation over trade, energy and water, and agreed to set up a council to foster relations.
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During his visit to Ankara in December, Maliki promised that there would be increased Iraqi government cooperation against the PKK.
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