On September 9, the Brazilian National Confederation of Industry (CNI) and the Japan Business Federation (Keidanren) co-hosted the 26th Plenary Meeting of the Brazil-Japan Business Council in São Paulo. A total of 400 business leaders joined the meeting. Gustavo Pimenta, Chairman of the Brazil-Japan Business Council, CNI, led the Brazil side, while Tatsuo Yasunaga, the Keidanren Japan-Brazil Economic Committee Chair, represented the Japan side.

Japan and Brazil have deepened exchanges in various fields for a long time. Following the visits to Brazil of Prime Minister Kishida in May and Prime Minister Ishiba in November last year and President Lula's state visit to Japan in March this year, the year of 2025 marks the 130th anniversary of the establishment of diplomatic relations between Japan and Brazil. The two countries must take firm steps forward as strategic and global partners. Especially on the economic front, we must make every possible effort to elevate bilateral relations to the next level by starting negotiations on a Japan-Mercosur Economic Partnership Agreement (EPA).

Given the current international situation, strengthening such relations is of utmost urgency. The rules-based, free and open international economic order on which both Japan and Brazil have relied is currently facing significant challenges. In order to ensure a stable business environment and achieve sustainable growth, it is essential to create free and open alternative markets and diversify and fortify supply chains. From this perspective, it is necessary to strengthen transregional economic relations between South America, including Mercosur, and the Indo-Pacific region in which Japan is located. A Japan-Mercosur EPA, which our Business Council has been advocating, could serve as one of the conduits for achieving this.

In this regard, the participants noted that (1) Negotiations on free trade agreements (FTAs) between Mercosur and the European Union (EU) and the European Free Trade Association (EFTA) have made good progress towards conclusion and (2) President Lula of Brazil, who serves as the Mercosur president in the second half of this year, has stated that in addition to Japan, close cooperation with China, South Korea, India, Vietnam, and Indonesia will benefit Mercosur^#1.

Regarding climate change, both Japan and Brazil expressed their hopes for the success of the 30th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP30), chaired by Brazil. Both sides also agreed to further promote cooperation for environmental and climate change measures and sustainable development through initiatives such as the Japan-Brazil Green Partnership Initiative (GPI). Specific examples mentioned in the meeting include the acceleration of sustainable agri-food systems through the improvement of degraded farmland, promotion of public-private partnerships to mitigate climate change in agriculture and livestock industries, development of power grids, collaboration in the fields of biofuels and synthetic fuels including expansion to third countries, establishment of a Joint Crediting Mechanism (JCM), and cooperation in disaster prevention.

By addressing the above-mentioned issues, the business communities of Brazil and Japan will continue to work closely together in a wide range of areas to contribute to the further development of both countries and the South American and Indo-Pacific regions.