Prime Minister Junichiro Koizumi and his Australian counterpart, John Howard, agreed Wednesday that their two nations should study the pros and cons of a bilateral free-trade agreement for about two years.
The decision to establish a government-level feasibility group to study the matter came during a meeting between the two leaders in Tokyo. Despite the agreement, which was diplomatically seen as the best offer Japan could extend to the visiting Howard, Koizumi's lukewarm stance toward an FTA was clear in his remarks at a news conference after their meeting.
"This feasibility study will not directly lead to an FTA," Koizumi said after the summit. "After two years of discussions, we will then talk over what to do in the next stage."