I am delighted to announce a highly significant development in the bilateral relationship between Australia and Japan, our largest trading partner and the world's second-biggest economy.
Prime Minister Koizumi and I tonight agreed that Australia and Japan would undertake a feasibility study into a Free Trade Agreement. The study would be completed within two years.
More broadly, we agreed to look at ways to further elevate and enhance the strong economic relationship between our two countries.
During our talks in Tokyo, I emphasised to Mr Koizumi the continued primacy of Japan for Australia both as a longstanding economic and trade partner, and in working together to contribute to global and economic security.
Australia's commitment to working alongside Japan to support the reconstruction of Iraq and assist in the political transition was welcomed by Mr Koizumi.
I welcome the launch of negotiations on a bilateral social security agreement. The Australian Government is pleased that good progress has been made by the two countries towards the negotiation of a government-to-government agreement on competition issues.
Australia and Japan will continue to work closely on a range of global and regional issues, including counter-terrorism, non-proliferation and development cooperation.
Prime Minister Koizumi and I restated our mutual interest in the success of the Doha Round and our shared aspirations for APEC in 2005.
Mr Koizumi told me that Japan supported firmly Australian participation in open and inclusive regional institutions, including the East Asian Summit. I reiterated Australia's support for Japan becoming a permanent member of the United Nations Security Council.
Australia's commitment to the Aichi Expo and the Australia-Japan Year of Exchange in 2006 was warmly welcomed by Prime Minister Koizumi.