Australia-Japan discuss government procurement

Free trade talks between Australian and Japan in Tokyo included “useful discussions” on government procurement, despite no deal being struck.

Other topics of discussions included trade in goods and services, investment, energy/mineral resources and food supplies.

The next round will be held in Canberra in around April, the Foreign Affairs and Trade Deparmtne said in a press release.

The two countries held their first round of talks in Canberra in 2007, seeking to reach what would be Japan's first free-trade agreement with a major agricultural exporter.

Prime Minister Naoto Kan has made trade one of his priorities and the government is considering whether to enter into discussions on joining a trans-Pacific free trade pact that would require Japan to tear down the barriers surrounding its faltering economy.

Japan, citing food-security and cultural reasons, has long protected its now highly inefficient rice farmers against imports of cheaper grain from big producers such as the United States, Australia and Vietnam.

The agricultural ministry has warned that domestic production of wheat, sugar, dairy products and beef -- four major Australian products -- would be seriously damaged if tariffs were eliminated.

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