Prime Minister Junichiro Koizumi faces a tough diplomatic test as he braces for his first overseas trips since taking office. On June 30 he will meet U.S. President George W. Bush at Camp David. In late July, he will attend the summit of the Group of Eight leading industrialized nations in Genoa, Italy.

At home, Koizumi is drumming up support for his reform campaign in the runup to July's Upper House election. So far he has been doing very well. In one opinion poll after another, he continues to enjoy approval ratings of over 80 percent. His decision not to appeal the leprosy damages suit has boosted his popularity.

But the road ahead looks bumpy. For one thing, Koizumi's plan to shake up the system for using road taxes is meeting stiff resistance from within his Liberal Democratic Party. He also faces tough demands from the Bush administration to open up the domestic market and remove regulatory barriers. Domestic industries involved are ready to fight back.