Japan and Australia on Tuesday reaffirmed their intention to cooperate in pursuing free trade during the next round of international trade liberalization negotiations at the World Trade Organization.

The WTO round is scheduled to begin in 2000.

Their resolve was reaffirmed during talks in Tokyo on Tuesday afternoon between visiting Australian Prime Minister John Howard and Foreign Minister Masahiko Komura.

Howard reiterated Australia's stance that the upcoming WTO round should deal comprehensively with agriculture and services in addition to the areas already agreed, a ministry official quoted him as saying.

The world's major trading powers are largely divided into two camps: Japan, the European Union and Australia are calling for a wide range of issues and sectors to be put on the negotiation table at once, while the United States is concerned that such an approach will prolong negotiations and prefers a sector-by-sector approach.

Expressing concern that some countries are becoming more protectionist than ever, Howard told Komura that Australia expects Japan to take the lead in pursuing the principle of free trade and bringing success to the upcoming negotiation round, the official said.

Komura replied that in addition to agriculture and service sectors, Japan will continue to demand that industrial goods be included in the negotiations, saying Japan and Australia will be able to cooperate in this respect, the official said.

Regarding Japan's economic recovery efforts, Howard praised measures Tokyo has taken to implement financial reforms and stimulate the economy, saying the recovery of the world's second largest economy will have no small impact elsewhere, the official said.

Howard arrived in Japan on Monday for a five-day official visit, during which he is scheduled to meet with government and business leaders. Howard was to hold a bilateral summit with Prime Minister Keizo Obuchi later on Tuesday.