Japan pushes for a South American economic pact, eyeing energy resources
Tokyo is drafting a negotiation framework for a comprehensive economic partnership with the Mercosur bloc. The deal would secure Japanese industry's access to critical energy and mineral resources in South America and reduce dependence on China across strategic supply chains.
The Japanese government is drafting a framework for a comprehensive economic partnership with the Mercosur bloc, which groups Brazil, Argentina, Uruguay and Paraguay. Tokyo says the draft moves beyond tariffs to cover energy, critical minerals and food security.
The strategic case is straightforward: Japan wants to reduce its reliance on China for the lithium, copper and rare earths essential to its industrial base. Onshore and offshore natural gas reserves in Brazil and Argentina could also help diversify Japan's LNG import basket as it manages volatile pricing.
Mercosur officials say Japan is moving to fill the gap left by the long-stalled European Union deal. Ankara is watching closely, too: Türkiye's own push to expand exports to Latin America makes the Japanese template a useful sectoral reference, particularly for industrial goods, defence equipment and consumer durables.
More from Asia
Anti-war protests rock Japan as PM pushes for stronger defence
Japan is being shaken by its biggest anti-war protests in decades after the prime minister moved to reinterpret the country's pacifist constitution and ramp up defence spending. The push has split public opinion sharply.
Toyota expects $5.5 billion hit from Iran war fallout
Toyota has warned that the Iran war will cut its annual profit by about $5.5 billion as energy, shipping and raw material costs surge. The Japanese carmaker is revising its global supply forecasts in one of the biggest profit warnings yet linked to the conflict.
Explosion at China fireworks factory kills 26 people
An explosion at a fireworks factory in Hunan province, China, killed 26 people and injured 61, according to state media reports.