After 1 1/2 years of sometimes bitter negotiations, Japan and Mexico agreed Wednesday on a broad accord for a free-trade pact, according to Shoichi Nakagawa, minister of economy, trade and industry.

"We have reached a broad agreement in a package including the industrial sector and other areas," Nakagawa told a news conference following telephone talks with Mexican Economy Secretary Fernando Canales earlier in the day.

The agreement paves the way for the two countries to seal the deal by the end of the month, a deadline proposed by Mexico.

"I have the impression (a final agreement) is not far away," Nakagawa said.

If the pact is sealed, Mexico will be the second country to ink an FTA with Japan following Singapore, which signed an agreement in January 2002. It will also represent the first time Japan has agreed to a comprehensive free-trade package that involves the agricultural sector.

Agriculture was not a sensitive issue in the FTA with Singapore, which is not a major farm exporter.

Mexico threatened to discontinue the talks if the two sides made no progress by the end of March.

Nakagawa said that he and Canales confirmed that both countries have essentially agreed on contentious issues in the industrial sector, such as steel and automobiles.

He said the two countries also cleared most of the hurdles over contentious issues in the agricultural sector at a Tuesday meeting between Yoshiyuki Kamei, minister of agriculture, forestry and fisheries, and his Mexican counterpart, Javier Usabiaga.

Nakagawa said, however, that some issues remain to be settled via working-level negotiations ahead of a final agreement.

If the deal is finalized, it would give momentum to Japanese negotiations with other Asian countries, Nakagawa said, before adding, "This is not yet a final agreement, so we cannot summarize the details now."