Japanese PM gives new impetus to NZ trade talks

John Key and his wife Bronagh (left) with Japanese Prime Minister Yukio Hatoyama and his wife Miyuki (right) in Tokyo last night. Photo / Getty

Japan has effectively wiped the slate clean on past agreements by the two countries on a free trade agreement and signalled it is serious about achieving results.

After talks in Tokyo last night, New Zealand Prime Minister John Key and Japan's new Prime minister Yukio Hatoyama asked officials to go back to the drawing board.

A previous agreement to study a free trade deal stalled under past Tokyo governments, with Japanese officials being blamed.

In a joint statement issued last night, the leaders indicated that such stonewalling had to stop - they said they had "instructed the [officials] group to deepen discussions in a constructive manner so as to take the partnership forward".

Mr Key said the bulk of the talks last night had centred on trade.

He said there was "wide-ranging interest on the Japanese side to make progress on a bilateral basis" and they had talked about regional trade as well.

He believed Mr Hatoyama was genuine in wanting to re-energise the relationship but it would only work with direction from the top "and I think he gave that pretty clear direction tonight".

Mr Key and his officials held talks at the Prime Minister's office in central Tokyo. Mr Key and his wife Bronagh were then dinner guests of Mr Hatoyama and his wife Miyuki at the nearby residence in the same compound.

They were the first dinner guests of Japan's first couple since Mr Hatoyama took office six weeks ago.

Mr Key gave him a gift of a rugby ball signed by the All Blacks and a rugby jersey which he said Mr Hatoyama put on.

He also joked that Mrs Hatoyama was keen to meet All Black Dan Carter on the recommendation of Mrs Key.

During a photo shoot before the dinner, Mr Key pinned a silver fern badge on to Dr Hatoyama's lapel, much to the curiosity of the Japanese media.

New Zealand officials explained that it was the sporting emblem of the country and that the All Blacks were playing Australia tomorrow in Tokyo.

Mr Key said Dr Hatoyama had expanded on his vision of an East Asia Community which was that it should include trade and security issues and that New Zealand would be a part of it.

They had also discussed the prospect of it including "potentially the United States".

Mr Key said that he had made the point during talks that there was a a limited amount of time that leaders had to engage in regional forums "and in the end we need to make them as meaningful as possible".

"His view was maybe they are not always as meaningful as possible because they don't have a collection of all the issues on the table at one time."

Mr Key described Dr Hatoyama as a "very charming man" and said he is "well disposed to New Zealand".

He had gone out of his way to give him an extraordinary amount of time given he had been in the job just 40 or so days.