Visiting British business secretary Peter Mandelson extended an invitation to Prime Minister Yukio Hatoyama to visit his country and recommended that bilateral talks be initiated to remove barriers on trade and investment.

"I have suggested to the prime minister that we look at those barriers and restrictions that stand in the way of increased trade and investment," Mandelson said after meeting with Hatoyama on Monday.

"This is not so much tariff barriers as regulatory ones," he said. "I want Japan to be open for business, doing business in new ways with foreign investment."