Rudd, who campaigned and won on a pledge to withdrawing Australian troops, said during a joint news conference with Bush that Australia's support had shifted to helping the Iraqi economy and society. Rudd has committed a $165 million aid package to help train Iraqis to farm better in the arid climate.

"We are a dry continent. We know a fair bit about dry land farming," Rudd said. "So we'll be spending a lot of money training a lot of Iraqi farmers and agricultural scientists in the year ahead."

Bush said he appreciated Rudd keeping his election promise.

"I respect somebody who does what they say they are going to do," Bush said. "But he also acted like you expect an ally to act and he has consulted closely with us."

While Australia will withdraw troops from Iraq, Rudd said it would be in Afghanistan "for the long haul."

"I want to thank very much the Australian government and the Australian people for their willingness to help a young democracy such as Afghanistan," Bush said.