Paraguay’s Foreign Minister announced in the Nikkei outlet that Mercosur and Japan will start free trade discussions next month.
During his Japan visit, Ruben Ramirez Lezcano pinpointed the start date for these crucial discussions, which have piqued interest on both sides.
As Mercosur’s current leader, Ramírez aims to boost the group’s agricultural exports to Japan, the globe’s fourth-biggest economy.
Mercosur, having recently concluded a free trade deal with Singapore, is eager to forge additional agreements within Asia, according to Ramírez.
In the Nikkei interview published Monday, he highlighted Paraguay’s pursuit of joint ventures with Japan in renewable energy and technology.
He also expressed a desire to strengthen trade ties with China, alongside Mercosur partners Argentina, Brazil, and Uruguay.
Ramirez’s trip aligns with Paraguay’s plans to potentially invite Japan’s Prime Minister Fumio Kishida to South America this year.
Ramirez will meet Japanese Foreign Minister Yoko Kamikawa and business leaders in Tokyo.
Earlier, in January, Kishida had discussed a possible Mercosur-Japan trade agreement with Brazilian President Luiz Inácio Lula da Silva, during the outset of his G20 presidency, a consortium of leading global economies.
Background
This move towards negotiation marks a significant step in international relations, highlighting the growing importance of Asia-Latin America trade corridors.
Mercosur’s strategic pivot towards Asia reflects a diversification strategy in response to shifting global trade dynamics.
Historically, Mercosur countries have focused on Western markets, but in recent years, they have seen a shift towards Asia, driven by its economic growth and demand for agricultural products.