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JAPAN, AUSTRALIA AGREE TO DISCUSS FREE TRADE AGREEMENT.
CANBERRA, May 1 Asia Pulse - Australia and Japan have said that the two countries will begin formal discussions to establish a free trade agreement (FTA), however neither country showed great optimism about its chances of success.
Prime Minister John Howard and his Japanese counterpart Junichiro Koizumi today held a formal meeting in which the idea of an FTA was discussed.
While both countries agreed to begin formal discussions at a bureaucratic level on the issue, Mr Koizumi warned any deal would not happen overnight.
Mr Koizumi said there were differences between the two countries on issues, particularly agriculture.
He said despite those differences, an FTA could be achieved.
"I believe these are not insurmountable problems," he told a joint press conference.
In answer to a question about Japan reducing its high levels of agricultural protection, Mr Koizumi said Japan wanted to boost its level of food self-sufficiency.
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