Wellington, June 23 NZPA - New Zealand and Australian ministers have signed an updated agreement on coordinating business law as the two countries work towards a single economic market.

The revised Memorandum of Understanding (MOU) on the Coordination of Business Law was signed at a Closer Economic Relations meeting in Canberra by the Commerce Minister Simon Power and the Australian minister responsible for financial services Chris Bowen.

Mr Power said: "The revised MOU deepens the already close relationship between our two countries and takes another step towards achieving the ultimate goal of a truly single economic market."

Mr Bowen said working towards a single economic market would reduce and remove barriers for businesses, consumers and investors, as well as increasing productivity, and innovation.

The ministers said progress had been made towards a single economic market following the prime ministers' joint statement of intent and release of 27 short-and-medium-term outcome proposals in August last year.

Also at the meeting were Australian Trade Minister Simon Crean, Australian Minister for Agriculture, Fisheries and Forestry Tony Burke, New Zealand Trade Minister Tim Groser and New Zealand Minister of Agriculture, Biosecurity and Forestry David Carter.

Australian Prime Minister Kevin Rudd visits New Zealand on June 29.