Japan and the European Union agreed Monday to step up their cooperation in dealing with North Korea, the Middle East peace process and other international issues at their annual summit in Tokyo.

Prime Minister Junichiro Koizumi, European Commission President Romano Prodi and Danish Prime Minister Anders Fogh Rasmussen, the current chair of the EU, concurred it is important to maintain dialogue with Pyongyang, according to a Foreign Ministry official who briefed reporters.

They agreed that efforts must be made to prevent tensions from escalating on the Korean Peninsula following a recent naval shootout between North and South Korean forces near their border in the Yellow Sea.