Japan ready for talks on EU free trade deal

(TOKYO) - Japan said on Friday it wanted to start talks on an EU-Japan free trade deal to link the world's third largest economy and the leading global market, a report said.

Prime Minister Naoto Kan told his cabinet ministers to work on reforms demanded by the European Union, such as removing non-tariff trade barriers and liberalising public procurement, Kyodo News reported.

The premier's remarks came as ministers resumed discussions on trade liberalisation issues, which had been suspended in the wake of the March 11 earthquake, according to Dow Jones Newswires.

Japan has been pressing the European Union hard to announce the launch of formal negotiations towards a deal at a summit in Brussels on May 27 and 28.

On prompting by Britain, leaders of the 27-nation bloc called in March for the speedy launch of negotiations for a free trade deal to assist disaster-struck Japan -- but on the proviso that Tokyo lift trade restrictions.

Trade ties between the two have consistently shown a strong surplus in favour of Japan -- the EU currently being Japan's third largest trade partner while Japan is Europe's fifth largest.

Japan has been eager to launch free trade negotiations with the European Union as it believes the elimination of EU tariffs on cars and electrical appliances would benefit Japanese companies.

But the EU is looking to Japan to scrap non-tariff barriers, including on food, while offering better general access to European firms.

During a brief stop in Brussels this month by Foreign Minister Takeaki Matsumoto, his spokesman said Tokyo hoped for a quick trade agreement to ease recovery from the quake and tsunami.

Officials from both sides are currently working at defining a "scoping exercise" -- a to-do list scheduling the obstacles to overcome before the launch of free trade negotiations. That is expected to be agreed at the summit.