The Mercosur economic bloc serves a combined population of 259.45 million citizens, boasting the GDP of US $2,427 billion. It is a massive market in which more than 1,000 Japanese companies now have local operations, which require more free trade and investment rules enhancing its business environment. As a customs union, Mercosur has lead negotiations on free trade agreements (FTA) with the European Union and South Korea. The local Japanese business community doing business in Mercosur is increasingly concerned that Japan will lose competitiveness with the economies that have already started the FTA talks with Mercosur.

Against this backdrop, the Japanese-Argentine Joint Business Cooperation Committee (the Japan Chamber of Commerce and Industry and the Argentine Chamber of Commerce and Services) and the Japan-Brazil Business Council (Keidanren and the Brazilian National Confederation of Industry) issued joint reports, in May^#1 and July^#2 2018, respectively, calling for launching negotiations on an Economic Partnership Agreement (EPA) between Japan and Mercosur. In an era of mounting concern over the rise of anti-globalism and protectionist sentiment, the EPA between Japan and Mercosur can be brought to significant bear on promoting a free and open economy in the world.

We therefore encourage the political leaders of Japan and Mercosur to demonstrate their strong leadership to launch the negotiations on the EPA, seizing every opportunity to discuss the issues.

1. Joint statement of the 25th Japanese-Argentine Joint Business Cooperation Committee (May 28, 2018)
2. Roadmap for an Economic Partnership Agreement between Japan and Mercosur (July 23, 2018)