Japan plans to start trade talks with South American bloc Mercosur, aiming to secure alternative oil and mineral supplies while reducing auto tariffs in a growing market, Nikkei Asia reported Wednesday.
Japanese Prime Minister Sanae Takaichi is expected to meet Brazilian President Luiz Inácio Lula da Silva on the sidelines of the mid-June G7 summit, with plans to also engage other Mercosur members, the publication said.
The bloc - comprising Brazil, Argentina, Uruguay, Paraguay, and Bolivia - has nearly 300 million people and a GDP exceeding $3 trillion, roughly 75% of ASEAN's, the news daily said.
Japan has free trade deals with ASEAN, Australia, and the EU, but not with Mercosur, leaving ample room for growth, as fiscal 2025 exports to the bloc were only 0.8% of Japan's global total and imports 1.3%, it said.
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