The South American trade bloc Mercosur has launched negotiations with Japan for an economic partnership agreement, aiming to expand trade ties following a recent deal with the European Union.

Economic Partnership Talks

A deal with Japan would create a free trade area of about 400 million people with a combined GDP of $7 trillion. The push for new trade partnerships comes as countries seek to diversify economic ties amidst global trade uncertainties.

Mercosur’s members, including Argentina, Brazil, Paraguay, and Uruguay, announced the talks during a leaders summit in the Paraguayan capital Asuncion. The bloc had already held two meetings with Japanese officials in January and March.

Brazilian President Luiz Inacio Lula da Silva and Japanese Prime Minister Sanae Takaichi discussed the launch of negotiations during a bilateral meeting at the G7 summit earlier in June, noting progress in previous talks between the parties.

Mercosur aims to soon launch negotiations with China as well, as it “continues to move closer to the most dynamic markets on the planet.” The bloc signed a free-trade deal with the EU in January, setting up one of the world’s largest free-trade zones.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.