Switzerland and Japan agreed on Friday to start free trade talks for what is Tokyo's first attempt at a bilateral trade agreement with a European country.

During a telephone conversation, Swiss President Micheline Calmy-Rey and Japanese Prime Minister Shinzo Abe affirmed the importance of free trade between the two countries and announced the opening of negotiations for such an agreement, Swiss Radio International (SRI) reported.

Japan is Switzerland's third most important trade partner, after the Europe Union and the United States, according to the report.

The two countries have been studying the possibilities of economic partnership and a free trade agreement since October 2005.

A joint study group concluded that such an agreement would significantly enhance bilateral economic relations - including trade in goods, services and investment - and could strengthen the competitiveness of companies in both countries.

Japan is seeking to export more electronic goods to Switzerland, while Swiss pharmaceutical and watch-making companies have been looking to boost shipments to Japan.

Switzerland announced last October that it was looking to boost its free trade accords with other countries following the suspension in July of the Doha Round of world trade talks.

It is set to sign a free trade agreement with Egypt next week, and an accord with Canada is also on the cards, the SRI reported.

Switzerland is also pursuing free trade accords with Thailand, Indonesia and the Gulf states.

Source: Xinhua