Ford CEO Alan Mulally has described Japan as the 'most closed automobile market in the world' as he reiterated his opposition to Japan entering into free trade talks with the US under an Asia-Pacific agreement.

Mulally also voiced concern over the extent of the recent fall in the value of the yen.  "The markets should determine the exchange rate," Ford CEO Alan Mulally told reporters in Bangkok, referring to what he said was "the devaluing of the yen", Reuters reported.

Reuters noted that Ford has been vocal in opposing Japan's entry into the talks for the Trans-Pacific Partnership (TTP), a US-led Pacific free trade pact, until Tokyo opens its car market.

"It's the most closed automobile market in the world," Mulally said, highlighting the combination of non-tariff barriers on vehicle imports and distribution.

"They should open up their market, they should restructure their industry, and that's why we're encouraging the people negotiating the free trade agreements that they deal with that," Mulally was cited as saying by Reuters.

The Reuters report added that countries involved in the TPP talks – including Canada, Mexico and Australia - want an agreement this year but Mulally is worried that Japan's interest could slow down the process. Those countries could decide in April whether to allow Tokyo into the talks, Reuters said.

Ford in Europe has also been a vocal opponent of a proposed free trade agreement between the EU and Japan, arguing that Japan needs to do much more to open its car market so that free trade would be a genuine two-way street.