By Brazil Stock Guide – Brazil and Japan said they will begin negotiations on an economic partnership agreement between Japan and Mercosur, opening a new trade front between Asia’s fourth-largest economy and the South American bloc.
The announcement followed a meeting between Brazilian President Luiz Inácio Lula da Silva and Japanese Prime Minister Sanae Takaichi in France, where both leaders were attending the Group of Seven summit, according to Broadcast.
Japan and Mercosur agreed to launch talks on an Economic Partnership Agreement, the South American bloc said in a joint statement. The negotiations are expected to cover trade opportunities and supply-chain cooperation between Japan and the five-nation bloc.
Tokyo is seeking to expand exports of automobiles, auto parts and agricultural, forestry and fishery products to Mercosur countries, according to the statement. Japan also aims to use the partnership to help secure stable supplies of critical minerals, oil and other resources.
The initiative comes as major industrial economies look to diversify access to strategic inputs and reduce exposure to supply disruptions. For Japan, closer commercial ties with Mercosur could support both export growth and resource security.
For Mercosur, the talks mark a potential opening with one of Asia’s largest economies, at a time when the bloc is seeking to deepen trade relations beyond its traditional partners.
The statement did not provide a timeline for the negotiations or specify when the first formal round of talks will take place.
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