Mercosur Begins Trade Talks with Japan, Targets China for New Partnerships
Mercosur's Expanding Trade Strategy and Global Partnerships
Launch of Negotiations with Japan
SAO PAULO, June 30 (Reuters) - The South American trade bloc Mercosur launched negotiations with Japan on Tuesday for an economic partnership agreement as it seeks to expand trade ties following a recent deal with the European Union.
Potential Impact of a Japan-Mercosur Deal
A deal would create a free trade area of about 400 million people with a combined GDP of $7 trillion. The push for new trade partnerships comes as U.S. President Donald Trump's sweeping tariffs on goods from trading partners around the globe have driven countries to diversify economic ties.
Mercosur Leadership and Previous Engagements
Mercosur's members - including Argentina, Brazil, Paraguay and Uruguay - announced the talks during a leaders summit in the Paraguayan capital Asuncion, as the host country transferred the bloc's pro tempore presidency to Uruguay.
History of Japan-Mercosur Discussions
The bloc had already held two meetings with Japanese officials in January and March, the countries said in a joint statement.
High-Level Political Support
Brazilian President Luiz Inacio Lula da Silva and Japanese Prime Minister Sanae Takaichi discussed the launch of negotiations during a bilateral meeting at the G7 summit earlier in June, noting progress in previous talks between the parties.
Objectives of the Economic Partnership
"Under this agreement, the two parties will seek to expand access to markets for agricultural and non-agricultural goods, as well as cooperation and mutual investment, by integrating the value chains between their two economies," the statement said.
Recent Achievements and Future Negotiations
Mercosur-EU Free Trade Agreement
The bloc signed in January a free-trade deal with the EU after 25 years of negotiations, setting up one of the world's largest free-trade zones. The agreement provisionally entered into force on May 1.
Ongoing and Prospective Trade Talks
Beyond Japan, Mercosur has ongoing negotiations with Canada for a trade deal, as officials on both sides hope to conclude the talks as soon as September or October.
China as a Key Target for Future Partnerships
The bloc aims to soon launch negotiations with China as well, Lula said in a speech at the summit, as it "continues to move closer to the most dynamic markets on the planet."
(Reporting by Fernando Cardoso and Isabel Teles, Editing by Franklin Paul and Sanjeev Miglani)
