Japan PM suggests trade pact to new EU leader

(TOKYO) - Japanese Prime Minister Yukio Hatoyama stressed the need for a free trade pact with Europe in a phone conversation on Thursday with incoming EU president Herman Van Rompuy, the foreign ministry said.

Hatoyama said Japan and the EU were "global partners" and expressed a wish to work closely with Van Rompuy, the ministry said in a statement.

The Japanese premier said a broad economic partnership agreement, including a free trade pact, would benefit both parties.

Hatoyama "said that he thought an economic partnership agreement with the EU was necessary in order to further strengthen Japan-EU relations," the statement said.

The two also confirmed their commitment to cooperating on global issues such as climate change and the financial crisis.

Hatoyama said he had "high hopes" for Van Rompuy's leadership to overcome difficulties, the statement added.