Mercosur launches formal trade negotiations with Japan

Leaders of the Southern Common Market (Mercosur) launched formal trade negotiations with Japan and reaffirmed a strategy of global diversification during their 68th summit in Asunción, Paraguay. The two-day meeting, which concluded on Tuesday, June 30, 2026, also saw the bloc’s rotating presidency pass from Paraguay to Uruguay.

The economic partnership agreement with Japan, formally opened for negotiation, aims to create a free-trade area encompassing roughly 400 million people and a combined economic output of about $7 trillion. According to a joint statement, the deal would seek to expand market access for agricultural and industrial goods, encourage mutual investment, and integrate value chains. Preparatory technical talks were held in January and March, with the final political push coming from a meeting between Brazilian President Luiz Inácio Lula da Silva and Japanese Prime Minister Sanae Takaichi at the Group of Seven summit in June.

The Japan initiative is part of a broader external agenda. President Lula confirmed the bloc’s intention to also seek formal trade negotiations with China, describing a strategy of moving closer to the world’s most dynamic markets. Leaders...