During his trip to Asia, Lula will discuss a trade agreement between Mercosur and Japan.

247 - President Luiz Inácio Lula da Silva (PT) travels to Japan this Saturday (22) with a view to proposing to the Japanese government the negotiation of a trade agreement with Mercosur. According to a column by journalist Jamil ChadAccording to UOL, diplomatic sources confirmed that the topic will be among the priorities on the Brazilian agenda during the trip. However, the proposal is still in a preliminary phase, as it is not yet defined whether it will be a free trade agreement or an association focused on reducing tariff barriers and increasing trade flows.

Depending on the receptiveness of the Japanese government, Brazil should take the suggestion to the other Mercosur members — Argentina, Paraguay, Uruguay, and Bolivia — to initiate multilateral negotiations. According to the Lula government, the initiative seeks to strengthen the South American bloc's integration into the Asian market and expand the region's diplomatic and economic weight in a context of growing protectionism, especially on the part of the United States.

According to the report, one of Brazil's main goals is to gain a more significant share of the Japanese market for beef and pork. Opening up trade in this sector is considered strategic, both economically and politically, since Japan maintains high sanitary standards and a strict food import system.

In February of this year, ApexBrasil (Brazilian Trade and Investment Promotion Agency) conducted a comprehensive assessment of the potential of the Japanese market, given the 130 years of diplomatic relations between the two countries. The survey identified more than 360 opportunities for expanding Brazilian exports, with particular emphasis on mineral fuels, iron and copper ore, soybeans, pulp, corn, wheat and rye, as well as meat.

Brazil is also preparing to participate in the Osaka World Expo, which will take place between April 13 and October 13, 2025. With the theme "Designing the society of the future for our lives," the event is expected to consolidate Brazil's presence in Asia and serve as a showcase for its products and technologies.

Currently, Brazilian exports to Japan total US$5,6 billion, with iron ore, chicken meat, and green coffee being the main products—which together represent 43,4% of the export portfolio. Between 2020 and 2024, Brazilian sales to the Asian country grew at an average annual rate of 7,8%, a rate higher than that of the Japanese economy, which has been facing difficulties in resuming robust growth. In 2024, for example, the Japanese GDP grew by only 0,3%.

Investment flows are also on the rise. According to ApexBrasil, the stock of Japanese Foreign Direct Investment (FDI) in Brazil reached US$36,1 billion in 2023, an increase of US$6,6 billion compared to the previous year. Japan currently ranks 11th among the largest investors in the country, with a significant presence in sectors such as metallurgy, agribusiness, the automotive industry, chemicals and petrochemicals, as well as food and beverages.

From 2013 to January 2024, more than 220 Japanese projects were implemented in Brazil, generating over 32,7 jobs. This data indicates not only a solid commercial relationship, but also fertile ground for the expansion of strategic partnerships, especially given the willingness of both countries to strengthen economic ties.