Mercosur launches trade talks with Japan amid global tariff shifts

Mercosur launched negotiations with Japan for an economic partnership agreement at its summit in Asunción. The four full members of Mercosur, Argentina, Brazil, Paraguay and Uruguay, made the announcement as the bloc handed its pro tempore presidency from Paraguay to Uruguay.

The talks build on the Japan-MERCOSUR Strategic Partnership Framework launched on December 20, 2025, and two follow-up meetings with Japanese officials in January and March. Japanese Prime Minister Takaichi Sanae and Brazilian President Luiz Inácio Lula da Silva also discussed the launch on the sidelines of the G7 summit in Évian-les-Bains, France, on June 16. In their joint statement, the two sides exchanged views on each other’s interests and sensitivities that should be duly addressed.

The proposed deal is aimed at expanding access to markets for agricultural and non-agricultural goods, deepening cooperation and mutual investment, and integrating value chains across the two economies. It could also create a free-trade area of about 400 million people with a combined GDP of $7 trillion. For Japan, the opening offers a larger South American market and potentially easier access to agricultural goods. For Mercosur, it adds another route into Asia.

The EU-Mercosur Interim Trade Agreement became applicable on May 1, after being signed in January. It removes duties on over 91% of EU goods exported to Mercosur over up to 10 years, according to the European Commission. It also gives Mercosur exports to the EU progressive removal of duties on 92% of imports and preferential access for another 7.5% over the same period.

Talks with Mercosur began in March 2018 and were relaunched in October 2025, with Canada-Mercosur merchandise trade reaching $19.4 billion in 2025. Canada estimates Mercosur, excluding Bolivia, represents about $4.0 trillion in GDP and 270 million people. Lula went further in Asunción, saying Mercosur wants to open negotiations with China soon as well.