[May 14, 2008]

Fukuda, New Zealand's Clark voice concerns of high food prices+

(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, May 14_(Kyodo) _ Japanese Prime Minister Yasuo Fukuda and visiting New Zealand Prime Minister Helen Clark on Wednesday expressed "strong concerns" about the impact of soaring food prices on developing countries and reconfirmed the importance of maintaining the stability of food supplies.

At talks in Tokyo, the two leaders also agreed to enhance bilateral dialogue on security and defense, and to have the bilateral Joint Economic Consultations forum present options for the framework for future economic cooperation by the end of 2008, they said in a joint press statement.

Despite New Zealand's strong desire to conclude a free trade accord with Japan, however, the statement stopped short of stating any agreements. It only said the leaders directed the Working Group on Strengthening the Economic Relationship to submit a final report by yearend.

A Foreign Ministry official said ahead of the talks that Japan will not immediately enter free trade negotiations with New Zealand, whose exports to Japan comprise mainly agricultural products. This is because agricultural lobbies in Japan strongly oppose free trade deals with major farming nations.

On food prices, the two leaders "reconfirmed the importance of stability of food supply, recognizing that Japan is a net importer and New Zealand an important supplier of food." They also noted concerns about the "acute impact" of rising prices on developing nations' efforts to overcome poverty and achieve the U.N. Millennium Development Goals.

As for security and defense cooperation, Fukuda officially announced Japan's participation in the Proliferation Security Initiative exercise to be hosted by New Zealand in fall, a Japanese official said.

Reaffirming their commitment to international efforts to combat terrorism, especially in the Asia-Pacific region, Fukuda and Clark agreed to continue cooperation including Japan's refueling assistance to New Zealand's frigates engaged in maritime interdiction activities, the statement said.

Regarding climate change, a key issue discussed at the talks, New Zealand welcomed the Japan-proposed "Cool Earth 50" initiative to halve global emissions by 2050 and agreed to work closely with Japan "to explore the cooperative sectoral approach to improve energy efficiency," according to the statement.

The two nations will also convene working-level discussions on ways to strengthen bilateral science and technology cooperation, the statement said.

On regional issues, the leaders urged North Korea to fulfill its promise to submit a "complete and correct declaration" on its nuclear arms and development programs.

They also expressed "deep concerns" over the human rights situation in the North, including its past abductions of Japanese and other foreign nationals, and urged Pyongyang to take action to resolve them.

Fukuda and Clark, who last met in November at the East Asia Summit in Singapore, also reaffirmed their commitment to cooperation in promoting peace and security in Asia, including East Timor and Afghanistan, the statement said.

Ahead of her talks with Fukuda, Clark also met with Chief Cabinet Secretary Nobutaka Machimura.

The New Zealand prime minister is also scheduled to give a keynote address on Thursday at the inaugural Japan New Zealand Partnership Forum, the first high-level, business-led initiative between the two nations.

The forum brings together senior political figures, top executives and opinion leaders.

Clark's trip, which will also take her to South Korea, comes just weeks after New Zealand signed a groundbreaking free trade agreement with China.

Japan is New Zealand's third largest export market, while China is its fourth and South Korea stands in sixth place.

Copyright ? 2008 Kyodo News International, Inc.

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