It is not a hidden news that European Union wants to increase its business ties with the world's biggest economies. It seems that they have been working hard on their plan. It has been found that a free trade pact talks are going to take place with Japan.

All the credit for the efforts goes to France and Italy, as they are the ones, which have won this protective measure for carmakers. Concerns were raised by car makers that they have been making job cuts due to poor demand in the home countries. They feared that Japanese imports would lead to greater problems.

Therefore, EU negotiators were asked to have a meeting with the authorities concerned. Things are not easy for European industry as Tokyo has levied on them, which makes it difficult to carry out business in Japan.

EU trade Chief Karel De Gucht said that they would like to make some things very clear that Europe is not an inexperienced player and has been going on with the deal with their eyes and ears open.

It has been found that Japan business groups are quite happy with the news. "We want [the Japanese government] to continue to put into effect regulatory and structural reform", said Keidanren, the Japanese business group.