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Helen Clark has secured a commitment from the Japanese Government to make a study on the benefits of a free-trade deal.
The commitment by Japanese Prime Minister Yasuo Fukuda came after their meeting in Tokyo yesterday.
Mr Fukuda's commitment is a feather in the cap for Helen Clark. It comes against a background in which there were fears that protectionist Japan would not examine such a prospect.
It is understood the Japanese Government was persuaded by the Prime Minister's suggestions that a deal with New Zealand could help secure supplies of quality food to Japan as a world food crisis looms.
Earlier, Helen Clark said Japan remained the world's second largest economy - taking almost twice as many New Zealand exports as China - and a deal would provide huge benefits.
"No one is saying the road forward is quick and simple. It isn't, but we've never been able to get that started before. In trade policy terms it is very exciting."
Helen Clark also raised the whaling issue with Mr Fukuda, stating New Zealand's opposition to Japan's scientific whaling programme in the Southern Ocean.
She had a more detailed discussion on the issue with Japan's chief Cabinet secretary Nobutaka Machimura - the equivalent of New Zealand's Deputy Prime Minister.
Mr Machimura said the Japanese Government would be bringing together all the ministers with some input into whaling before next month's International Whaling Commission meeting in Chile to assess its position.
- NZPA