Talks on a free trade agreement between Australia and Japan are in their final stages but its very unlikely that an agreement would be reached on trading of rice. Australian producers are keen to export to Japan, which at the moment charges prohibitive tariffs.

Australia is Japan's third largest agricultural export market, providing dairy products, beef and wool.

According to an offical from Japan's Agriculture Ministry, it was very unlikely that a trade agreement will be reached on rice for now reducing tariff on rice is a contentious issue.