Japan and the European Union have agreed to simplify customs procedures, the Japanese Foreign Ministry said on Tuesday.

The initialing of the pact, which is expected to be completed soon, took place between officials of the Japanese government and the European Commission, the executive arm of the 27-nation EU, earlier in the day on the sidelines of the Japan-EU summit in Berlin.

The accord is expected to enhance customs cooperation between the trading partners, including exchange of information, in order to speed clearance and control smuggling, the ministry said.

Japan and the EU have been negotiating the agreement since January, 2005.

Japan concluded its first customs agreement with the United States in 1997, and has signed similar accords with South Korea, China, Australia and Singapore. It is also in negotiations with Hong Kong.

The EU has concluded customs pacts with the U.S., Canada, China, Hong Kong, India and South Korea.

Japans trade with the EU amounted to 18.38 trillion yen (about US$153 billion) in fiscal 2006, and included a surplus of $35 billion.

Japan is the EU's fifth-largest export market after the U.S., Switzerland, Russia and China.