Japanese Prime Minister Junichiro Koizumi arrived in Berlin Sunday for talks with German leaders about economic ties between the two countries.
On Monday, Junichiro Koizumi will meet with German Chancellor Gerhard Schroeder. The two leaders are expected to discuss the problems facing the world's second and third largest economies.
They are to talk on the declining exports to each other's countries, according to German government sources.
Although Germany remains Japan's biggest trading partner in Europe, German's exports to Japan dropped to just over 12 billion euros (13.6 billion US dollars) last year, while Japanese exports to Germany fell more than 16 percent to less than 23 billion euros(26 billion dollars).
The two leaders will also discuss the issue of rebuilding Iraq.
Unlike Germany that opposed the US-led war on Iraq and is still reluctant to deploy troops in the country, Japan is preparing to send a contingent of troops to Baghdad for non-combat operations.
The Korean peninsula issue will also be on the agenda as officials from the Democratic People's Republic of Korea, the Republic of Korea, China, Japan, Russia and the United States are preparing for a crucial round of talks in Beijing at the end of August.
Germany does not wield a great deal of political influence in that issue, it has the advantage of maintaining a diplomatic representative in Pyongyang, something most western governments donot have.
After visiting Germany, Junichiro Koizumi will continue his tours to Poland and the Czech Republic.