Within the framework of the 68th Mercosur Summit of Heads of State held in Asunción, the governments of Argentina, Brazil, Paraguay, and Uruguay, alongside the Government of Japan, formally announced the launch of negotiations for an Economic Partnership Agreement (EPA). This announcement represents a milestone within the Mercosur-Japan Strategic Partnership established at the end of 2025, which was consolidated following key technical meetings held in January and March 2026.
The future agreement will pave the way for a major global free trade zone, uniting a market of approximately 400 million people with a combined Gross Domestic Product (GDP) of 7 trillion dollars. Japan currently ranks among the top ten trading partners for the South American bloc, with bilateral trade reaching 13.7 billion dollars in 2025. This legal instrument will seek not only to expand reciprocal market access for agricultural and non-agricultural goods but also to boost investments and the integration of value chains between both economies.
In the face of a complex international landscape, both parties agreed on the strategic importance of this rapprochement to guarantee economic and food security. Negotiations will be conducted under the premise of a comprehensive and balanced agreement covering trade and investment, while duly considering mutual sensitivities and promoting supply diversification in key sectors such as energy, agribusiness, technology, and critical minerals.
