Strengthening ties with Japan, our largest trading partner

Australia and Japan made good progress toward further strengthening our trade and economic relations, Warren Truss, Minister for Trade, said after meetings in Tokyo with Foreign Minister, Taro Aso, Minister for Economy, Trade and Industry, Akira Amari, and other senior Japanese Government leaders.

"It is fitting that my first overseas visit as Trade Minister is to Japan, which has been our largest export market for almost 40 years," Mr Truss said.

"I believe that we can enhance and broaden this tremendously successful trading relationship through a comprehensive FTA with Japan that would cover goods, services, investment and areas such as competition policy and government procurement."

"Ministers and senior Liberal Democratic Party (LDP) figures whom I met agreed an FTA would bring substantial gains to both countries. We also agreed that good progress had been made on the joint government study on the feasibility of an Australia-Japan FTA and that we were on track to finalise it toward the end of the year."

"Some elements of agriculture are sensitive issues for Japan. I acknowledged that Australia had developed a better understanding of these sensitivities, and noted we also had areas of sensitivity. It would be important if we are to begin a comprehensive negotiation that all products and issues are on the table. There must be no carve out of issues before the discussions begin."

In April 2005 the Prime Minister, John Howard, and former Japanese Prime Minister, Junichiro Koizumi, launched a study on the feasibility and pros and cons of a bilateral FTA. In March 2006 both sides agreed to intensify work on the study with a view to finalising it toward the end of the year.

Mr Truss said that he also exchanged views with Japanese ministers on how to restart the stalled Doha Round of WTO negotiations, noting that both sides agreed on the need to re-engage in the discussions at all levels.

In addition to Mr Amari and Mr Aso, Mr Truss met LDP Policy Research Council Chair and former Agriculture, Forestry and Fisheries Minister Shoichi Nakagawa, Alternate LDP Secretary General Nobuteru Ishikawa and Chairman of the LDP Sub-Committee on Basic Agriculture Policy, Takehiko Endo. He also met a number of other senior Dietmembers and business representatives.

Japan accounts for some 20 per cent of Australia's goods exports. In 2005, Australian goods exports to Japan grew 28 per cent to $28 billion.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555