British business minister Mandelson in Iraq

Britain's business minister Peter Mandelson arrived in Baghdad on Monday to lead the country's first official trade delegation to Iraq for more than 20 years, a British embassy official said.

The move is a further sign of London's desire to normalise relations with Baghdad as Britain pulls its troops out of southern Iraq over the coming months, six years after the US-led invasion.

"Lord Mandelson, the business secretary will lead a high-level business delegation on a one-day visit to the country," the embassy official said.

"The delegation, comprising 23 companies, will take the opportunity to visit both Baghdad and Basra."

British ministers have talked up business opportunities in Iraq, particularly in the southern port city of Basra where Britain's forces and reconstruction efforts are based.

"Lord Mandelson and the representatives will have the opportunity to meet with Iraq government ministers, including Prime Minister Nuri al-Maliki, to contribute to the economic reconstruction of the country," the official added.