The Australian and Japanese governments this week revealed that they will begin a feasibility study on a free trade agreement between the two countries.
The issue of a bilateral trade pact was raised by Australian Prime Minister John Howard during a visit to Tokyo which began on Tuesday. Mr Howard had previously visited Beijing, where it was agreed that negotiations would begin on an FTA.
Speaking to the Australian Broadcasting Corporation following the feasibility study's announcement, Australian Trade Minister Mark Vaile observed that conducting such an analysis "obviously takes some time". He went on to add:
"We all understand the sensitivity of agriculture here in Japan."
The possibility of an FTA between the two countries is likely to face strong opposition from the powerful Japanese agriculture sector, which is heavily subsidized by the government, and benefits from restrictions on agricultural imports.
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