September 21, 2006

Japan and Australia to hold FTA feasibility study

Japan and Australia would hold a three-day meeting in Tokyo, beginning Wednesday (Sep 20), to discuss a bilateral free trade agreement that would focus on farm trade and food supply, Foreign Ministry officials said Tuesday (Sep 19).

Talks have been ongoing since a feasibility study panel was established last November. The aim was to issue a final report by the end of the year, earlier than the originally scheduled spring of 2007, the officials said.

Japan's farmers are worried that signing an FTA with Australia, which exports huge quantities of beef and dairy products to Japan, would hurt their interests. 

However, Japanese industry groups favour the FTA as Australia supplies critical resources to Japan such as coal, iron ore and natural gas.