Japan, Mercosur to Begin Talks on Concluding EPA

Evian, France, June 16 (Jiji Press)--Japan and Brazil agreed Tuesday to start negotiations on the conclusion of an economic partnership agreement for free trade between Japan and South American trade bloc Mercosur.

The agreement was reached at a meeting between Japanese Prime Minister Sanae Takaichi and Brazilian President Luiz Inacio Lula da Silva in Evian, eastern France, where a three-day summit of the Group of Seven major industrialized nations is taking place.

Through the envisaged EPA, Japan aims to expand exports of automobiles and other products to Mercosur and strengthen economic security by diversifying its procurement sources for critical minerals and energy.

The five Mercosur member countries--Brazil, Argentina, Paraguay, Uruguay and Bolivia--have a combined population of about 300 million, and their total gross domestic product reaches some 3 trillion dollars.

Imports from Mercosur and exports to the region account for only about 1 pct of Japan's overall imports and exports, respectively, so the planned EPA would greatly benefit both sides.

[Copyright The Jiji Press, Ltd.]