Overview
- Japanese officials are preparing to launch formal negotiations with Mercosur in June to seek an Economic Partnership Agreement focused on autos and energy supplies.
- Tokyo is pressing for large cuts or the elimination of Mercosur’s roughly 35% import tariff on passenger vehicles, citing recent deals with the EU and a pending U.S. arrangement as models.
- Energy security is a central driver because Japan imports about 90% of its crude from the Middle East and Economy Minister Ryosei Akazawa has publicly flagged Brazil as a potential alternative supplier.
- The talks also aim to secure critical minerals and rare‑earth supply chains by developing sources and processing in Latin America to lower Japan’s heavy reliance on Chinese processing capacity.
- Diplomatic groundwork for the push was set by a December framework and a January meeting in Asunción, and if talks succeed the likely effects include cheaper Japanese car imports, shifting regional auto competition, and new export and investment opportunities for Mercosur energy and minerals sectors.