Mercosur is a major economic bloc with a population of approximately 300 million and a GDP approaching 3 trillion US dollars. Japan and Mercosur have built close cooperative relationships over many years, deepening exchanges in various fields such as politics, economy, culture, and human resources, with the Japanese-descendant community playing a pivotal role. Economically, Japan exports many industrial products to Mercosur, including automobiles, machinery, and electrical equipment. Japanese companies have established about 1,000 business locations in Mercosur, contributing to its economic and social development through job creation and export expansion for many years. Japan also imports mineral resources such as iron ore and lithium, as well as food products and livestock feed like corn and soybeans from Mercosur, which are indispensable for economic activities and people's daily lives. Thus, Japan and Mercosur have a mutually complementary relationship and are strategically vital economic partners. In addition, Mercosur is a region where renewable energy production is active and has great potential for further expansion. It is also a region where the importance of digitalization is highly awared and its implementation has been rapidly progressed. These fields also have a high possibility of collaboration with Japan.
To elevate this economic relationship to an even higher level and ensure continued economic and social development for both Japan and Mercosur in the future, it is essential to resolve various business challenges between the two parties and promote the free flow of people, goods, capital, services, and data. To provide the necessary institutional foundation, we have been urgently calling for expedited efforts to establish a Japan-Mercosur EPA. As Mercosur advances EPA negotiations and strengthens economic ties with countries and regions outside its bloc, it is crucial for it to also deepen economic relations with Japan, a major economic power in the Asian region.
The benefits that a Japan-Mercosur EPA would bring to both parties are immense. For Japan, this would enhance the stability of supply of mineral resources, feed, and foodstuffs. For Mercosur countries, not only would access to the Japanese market for primary commodities and other products become easier, but possibilities for expansion into the Asian market would open up with Japan as a gateway. Furthermore, the improvement of the business environment and the deepening and expansion of mutual trade and investment can serve as a driving force for further invigorating people-to-people exchanges and for the continued development and cooperation of industries in both Japan and Mercosur.
We call upon the leaders of Japan and Mercosur involved to demonstrate strong leadership to move expeditiously toward establishing a Japan-Mercosur EPA.
