Japan holds back on Mercosur talks as global free trade withers

Fate of 'last mega-FTA' to hinge on Japan's summer elections

20250320N Ishiba Lula

Japanese Prime Minister Shigeru Ishiba, left, will host Brazilian President Luiz Inacio Lula da Silva, right, for a state visit starting on March 24. (Source photos by Reuters)

SHIGERU SENO

TOKYO -- Ahead of a visit by the Brazilian president to Japan next week, and amid an intensifying trade war instigated by U.S. President Donald Trump, the Japanese government is grappling with how and whether to begin negotiations on joining a South American trade bloc.

The Southern Common Market, or Mercosur, is a large economic zone with a population of about 300 million. Its five full members are Brazil and Argentina -- South America's largest and second-largest economic powers -- as well as Bolivia, Paraguay and Uruguay.

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