OSAKA -- Canadian Prime Minister Jean Chretien praised the Kansai region's efforts to promote regional exchanges and said Canada wants to work with Japan in several different areas, from education to environmental technology.

"Kansai is the heartland of Japan. There are nearly 60 Kansai-based firms doing nearly $2.2 billion worth of business in Canada," said Chretien, who arrived in Osaka Tuesday morning following the APEC summit in Auckland.

Chretien is leading "Team Canada," a delegation of some 350 Canadian business, government and academic officials on a nearly weeklong trip to Japan that officially began Monday and ends in Tokyo on Saturday.

"The goal of our visit to Osaka is to discover the vitality of regions outside of Tokyo," Chretien said.

He indicated two market sectors in particular -- high technology and environmental technology -- where Kansai and Canadian business officials could forge new partnerships.

The prime minister also said the Kansai region, facing severe economic difficulties, could learn from the Canadian experience in deregulation and changing the role of local governments.

"We in Canada had to rethink the roles of government and business. We are ready to work with Japan as a partner and a friend," Chretien said. The mission will move to Tokyo today for talks with Japanese government officials, business group leaders and corporate executives. The delegation aims to promote bilateral trade and investment, as well as education and tourism.

Chretien is scheduled to meet with Prime Minister Keizo Obuchi on Friday.

"Team Canada decided to come to Kansai because, although the Kansai economy is strong, Kansai is not well-known in Canada," said International Trade Minister Pierre Pettigrew. "We are particularly interested in promoting the biotechnology and high-technology sectors."