Mercosur, a South American trade bloc, is in talks with Japan on an economic partnership agreement that would expand market access for agricultural and non-agricultural goods, Reuters reported Tuesday.
The talks were announced at the Mercosur leaders' summit in Paraguay, following two rounds of meetings with Japanese officials in January and March, and the proposed deal is expected to create a free trade area covering 400 million people with a combined gross domestic product of $7 trillion, the report said.
The bloc, which includes Argentina, Brazil, Paraguay, and Uruguay, implemented a trade deal with the European Union on May 1 and plans to launch negotiations with China to join the bloc.
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