A study group agreed Friday in Tokyo that a free-trade agreement could solve issues hindering trade and investment activity between Japan and Mexico, domestic officials said.
It was the second meeting of the group, which was launched in September and comprises government, academic and trade officials.
Members are aiming to compile by summer a series of recommendations on enhancing bilateral economic relations, with an eye to establishing an FTA.
Japanese officials are concerned about Mexico's tariffs rates, which are generally high, and about its FTAs with other major economies, such as the United States and the European Union.
Officials believe these accords have undermined the competitiveness of Japanese firms.
Domestic representatives also told their Mexican counterparts that the unstable and unpredictable Mexican business environment is an obstacle in terms of Japanese investment in the country.
Mexican officials meanwhile highlighted Japan's high import tariffs on some goods and said that the two countries should consider lowering their tariffs on sectors that are mutually complementary, according to the officials.
The two sides also agreed to adjust trade data, which are currently at odds due to differing statistical methodology, they said.
The group agreed to hold its next gathering this month in Mexico, the officials said.