Japan to begin EPA talks with South American economic bloc

Japan and an economic bloc of South American countries called Mercosur have agreed to start negotiations for an Economic Partnership Agreement (EPA).

Japanese Prime Minister Takaichi Sanae and Brazilian President Lula da Silva agreed on the issue during a meeting on Tuesday in France. Takaichi is visiting the country to attend the Group of Seven summit. Japan hopes to expand its exports of automobiles, auto-related parts, and farm, forestry and fishery products to the five-nation bloc that has a population of about 300 million.

Japan also hopes to use the EPA to secure smooth supplies of critical minerals, crude oil and other resources. The Japanese government also hopes to act as a free trade promoter through proactively working on the major EPA negotiations amid growing protectionism in the United States.