An annual US-Japan report card brought trade issues to the fore during the first day of Japanese Prime Minister Junichiro Koizumi's meeting with President George W. Bush.

The review shows Japan's progress in economic reform, which has contributed to its recent economic growth and forged closer US-Japanese business ties, US Trade Representative (USTR) Susan Schwab said.

"Under the stewardship of Prime Minister Koizumi, Japan has made important progress in reforming its regulatory environment," she said.

"These reforms have achieved real results, and I urge Japan to continue on this path of reform in light of the benefits it has brought to Japan's economy," she said.

The 76-page "Fifth Report to the Leaders" illustrates Japan's progress in tackling a raft of issues ranging from distribution and transportation to medical devices and pharmaceuticals and telecommunications.

The report is the culmination of high-level meetings and consultations between the two governments, presented annually to their leaders.

In fact it was Bush and Koizumi who launched the report by the two governments in 2001 as part of a joint initiative to boost economic growth by tackling regulatory and trade reform.

The two leaders have forged close personal ties, and in a symbolic joint statement Thursday said the US-Japan political, economic and military partnership is "one of the most accomplished bilateral relationships in history."

Covering the arcane -- from rules on quasi-foreign companies and medical device classification -- to front-page issues such as biometric identification for immigration control, privacy rights and spam, the report highlights the intricate meshing of the two economies.

However, it does not touch on the issue of Japan's ban on US beef imports, which Tokyo decided to lift this month amid threats of trade sanctions from its closest ally.

Koizumi stands down in September, raising the question of how the joint initiative will fare under his successor.

"I look forward to strengthening our work in this area," Schwab said.

A senior US trade official said the United States expects the review to continue with Koizumi's successor, but there may be an opportunity to "refocus" on issues.

"We feel that it has had great benefits for both of our countries," the official, who requested anonymity, said in a conference call.

"Particularly relevant this year" was a resolve to "combat counterfeiting and piracy of intellectual property rights," he said.