Japanese and Australian negotiators to meet in Australia next week to discuss free trade

Australian and Japanese officials will meet in Canberra Monday for the first round of negotiations on a bilateral free trade agreement.

A senior Australian trade official Friday said on the government condition of anonymity that the two days of talks would focus on setting a framework for future negotiations. The Department of Foreign Affairs and Trade's policy is to insist that officials who hold press briefings are not identified.

A joint feasibility study of the proposed agreement, commissioned in April 2005, found both countries would benefit from a free trade agreement.

Japan has been Australia's largest trading partner for nearly 40 years and is Australia's number one market for energy and mineral products, beef, dairy products, fish, canola, and pet and livestock foods, as well as being the second largest buyer of horticultural products and the third largest source of foreign investment and tourists to Australia.

The feasibility study found a comprehensive agreement could boost Australia's gross domestic product by 39 billion Australian dollars (US$33 billion; €24 billion) and Japan's by A$27 billion (US$23 billion; €17 billion) over a 20-year period.

In the last fiscal year, two-way trade in goods and services between Japan and Australia totaled A$454 billion (US$379 billion; €278 billion).

Australia has FTAs in place with the United States, Singapore, Thailand and New Zealand and is in negotiations on an agreement with the 10-member Association of Southeast Asian Nations, Chile, China and Malaysia.

Japan has signed FTAs with Mexico, Malaysia and Singapore and is in talks with several other nations on similar agreements.