I am pleased to announce today that Australia and Japan will commence negotiations on a Free Trade Agreement (FTA) in early 2007.
In a telephone conversation yesterday, the Prime Minister of Japan, Mr Shinzo Abe, and I reached this decision following the successful conclusion of a joint government feasibility study.
The study concluded that a comprehensive, WTO-consistent FTA was feasible and would deliver significant benefits to Australia and Japan. The study also recognised that there were sensitivities on both sides. Prime Minister Abe and I agreed that these would be best dealt with through the negotiation of a comprehensive FTA.
It is fitting that the negotiations will commence next year, the 50th anniversary of the landmark Agreement on Commerce between Australia and Japan, which was signed on 6 July 1957 by former Australian Trade Minister, Sir John McEwen, and former Japanese Prime Minister, Mr Nobusuke Kishi (grandfather of Prime Minister Abe).
That Agreement paved the way for the trade and economic links between Australia and Japan that have helped underpin both countries' prosperity since that time. Japan is Australia's largest trading partner, with two-way trade in goods and services totalling $53.9 billion in 2005-06.
It is our shared hope that an Australia-Japan FTA will assume similar historical and strategic importance over decades to come.
Prime Minister Abe and I restated our commitment to further strengthening the strategic partnership between Australia and Japan. As I have previously remarked, Australia has no closer partner and friend in the region than Japan.
I would like to take this opportunity to thank the Trade Minister, the Hon Warren Truss MP and his predecessor in the trade portfolio, Deputy Prime Minister, the Hon Mark Vaile MP, for their energetic and conscientious contributions to today's announcement.