Japan to Launch EPA Talks with Mercosur, Aiming to Expand Free Trade

(Central News Agency, Evian-les-Bains, June 16 — comprehensive international report) The Japanese government announced today that it will formally begin negotiations with Mercosur — a regional trade bloc composed of five countries including Brazil — to conclude an Economic Partnership Agreement (EPA).

According to Japan's Kyodo News, Prime Minister Sanae Takagi announced the move during a bilateral meeting with Brazilian President Luiz Inácio Lula da Silva on the sidelines of the Group of Seven (G7) summit in Evian-les-Bains, France.

Analysts note that the combined GDP of the five South American nations exceeds 3 trillion U.S. dollars (approximately 94 trillion New Taiwan dollars), making this a strategically significant economic bloc. Japan's initiative aims to expand free trade with this large market.

If successfully concluded, this agreement would become Japan's next major trade deal following the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Japan-EU Economic Partnership Agreement. Japan intends to push for reduced tariffs on automobiles during negotiations, with the goal of boosting exports.

On the other hand, South America's strong livestock industry raises concerns about increased imports of beef and chicken potentially impacting domestic Japanese farmers. Therefore, enhancing the competitiveness of local agricultural producers and minimizing negative effects will be key negotiation points.

The region is also rich in rare earth metals, and Brazil ranks among the world's top oil-producing nations. Due to export restrictions from China and the de facto blockade of the Strait of Hormuz, Japan has recently faced a sharp decline in resource procurement from specific regions. Expanding trade with South America could help diversify Japan's supply chains and reduce dependency risks. (Translation: Li Jing / Review: Yang Chaoyen) 1150616