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Japan, Australia agreed to study free trade agreement
(Agencies)
Updated: 2005-04-20 20:45 The prime ministers of Japan
and Australia said Wednesday they agreed to study the possibility of signing a
free trade agreement.
Canberra has long coveted a free trade deal with Japan, which is Australia's
largest export market and third-biggest source of investment.
Japan is heavily protective of its farmers, however, and agricultural goods
are among Australia's biggest exports.
Japanese Prime Minister Junichiro Koizumi told a news conference after
meeting John Howard, his Australian counterpart, that agricultural issues
presented ``tough challenges'' to the two sides.
Koizumi said he expected the FTA feasibility study to take two years, after
which the countries would decide whether to begin negotiations for a pact.
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