Japan will sign an agreement with Australia that will see the country sign free trade deals with more than a dozen countries, including New Zealand, according to Australian Prime Minister Kevin Rudd.
Rudd said the deal would also see the two nations share information about trade and investments, as well as provide incentives to invest in each other’s industries.
In exchange, Australia and Japan will provide free trade advice and consultations to each other in the event of a trade dispute.
The agreement is expected to be signed in early 2018.
Australia and Japan have had a trade agreement since 2008, when Japan’s exports to Australia were worth $5.6 billion, while Japan’s were worth an estimated $5 billion.
But last year, Australia’s trade deficit with Japan soared to $21.9 billion, prompting Rudd to declare a trade war.
Japan is now the world’s second-largest economy, overtaking the United States as the world leader in manufacturing.
The deal was struck after Rudd’s government was defeated in the 2010 election by the Labor Party.