Tony Blair is set to meet with George W Bush to discuss a series of divisive snags in the transatlantic partnership.

The prime minister and the president will address a series of contentious issues away from the pomp and circumstance of this week's state visit.

Defence issues appear set to come to the fore amid Washington's fears about the effects of the European defence force on NATO.

Also set for discussion is the divisive issue of US steel tariffs and the Bush administration's failure to recognise the Kyoto protocol.

Downing Street has already dashed hopes that the prime minister will secure a concession on the illegal tariffs.

The chancellor has also called on the US administration to end damaging trade and regulatory disputes.

The future of those held in Guantanamo Bay is also likely to test the transatlantic alliance.

The two leaders are expected to dedicate a large proportion of Thursday's talks to the situation in Iraq.

Whilst Britain has insisted it will not walk away, Blair will press the president to develop a political and diplomatic strategy in addition to the current military planning.

He will say that neighbouring states in the Middle East must be engaged in the process of rebuilding Iraq.

Meanwhile in a speech today the president will confront those who believe it will prove impossible to bring democracy to the region.