Japan to Start EPA Talks with Mercosur

Tokyo, May 27 (Jiji Press)–The Japanese government plans to start talks with Mercosur, the South American trade bloc, on concluding an economic partnership agreement, people familiar with the matter said Wednesday. Japan aims to diversify sources of resources supplies as the country struggles with U.S. President Donald Trump’s high tariffs, China’s restrictions on rare earth exports and the fallout of the war in the Middle East. Prime Minister Sanae Takaichi plans to tell Brazilian President Luiz Inacio Lula Tokyo’s wish to start EPA talks with Mercosur during their meeting on the sidelines of a Group of Seven summit in France in mid-June. Brazil is a member of Mercosur, or the Southern Common Market, which also includes Argentina, Bolivia, Paraguay and Uruguay. The bloc is a major exporter of agricultural products and minerals and has about 3 trillion dollars in combined gross domestic product. Japanese businesses, especially the automobile industry, hopes for an early start of EPA negotiations with Mercosur. But there is concern in Japan that an EPA with the bloc will cause a flood of cheap agricultural products, including beef, into the country. Japan has concluded EPAs with Southeast Asian countries, the European Union, Australia and others to promote free trade. END [Copyright The Jiji Press, Ltd.]