Japan and Mexico launched joint studies Tuesday on ways to enhance bilateral economic ties with the ultimate goal of striking a free-trade agreement, Japanese officials said.
At the panel's first meeting in Mexico City, government and industry officials and academics from both countries exchanged views on trade and investment issues. They agreed to continue talks to work out specific proposals.
The Japanese side expressed concern that Japanese firms who set up operations in Mexico after this year can no longer enjoy preferential tax treatment under a provision of the North American Free Trade Agreement.
The Mexican side said it is important to point out such concerns at the bilateral talks, the officials said.
The panel is scheduled to next meet in Tokyo in late November.
It plans to compile a report by the summer of 2002.
Prime Minister Junichiro Koizumi and Mexican President Vicente Fox agreed on launching the joint study when Fox visited Tokyo in June.