Japan and Brazil said Tuesday that Japan will begin negotiations on an economic partnership agreement with Mercosur, the South American trading bloc, by the end of this month as Tokyo seeks to strengthen ties with the resource-rich region and promote trade.
Japanese Prime Minister Sanae Takaichi and Brazilian President Luiz Inacio Lula da Silva confirmed the launch of the negotiations during a meeting in Evian-les-Bains, France, on the sidelines of the three-day Group of Seven summit through Wednesday.
Through the pact with the bloc, which also includes Argentina, Bolivia, Paraguay and Uruguay, Japan hopes to expand market access for automobiles and other products while diversifying supplies of critical minerals amid China’s recent restrictions on rare earth exports.
In her opening remarks, Takaichi described Brazil as “a strategic global partner that shares values and principles with Japan,” Deputy Chief Cabinet Secretary Kei Sato told reporters.
“Mercosur is an attractive growth market with a population of about 300 million and a combined GDP of roughly $3 trillion,” Sato said. “It is richly endowed with resources such as critical minerals, energy and agricultural commodities.”
Brazil, the largest economy in the bloc, is also a major oil producer, making the region increasingly important for Japan’s efforts to diversify supply chains and resource procurement.
Some lawmakers in Takaichi’s ruling Liberal Democratic Party remain cautious about the talks, warning that increased imports of products such as beef and chicken could hurt domestic producers.
The Japanese government is aware of those concerns and will seek to protect sensitive agricultural sectors during the negotiations, Sato said.
Lula attended the G7 summit as a guest of host France.
Also meeting separately Tuesday, Takaichi and French President Emmanuel Macron agreed to deepen cooperation on economic security, critical minerals and advanced technologies.
Takaichi also discussed with Macron the security challenges in the Indo-Pacific, including China, and stressed the importance of North Korea’s denuclearization and the early resolution of the abduction issue, according to the Japanese government.
© KYODO
