The South American trade bloc Mercosur has started negotiations with Japan for an economic partnership agreement. The announcement came during a leaders summit in Asuncion. It follows Mercosur's recent free-trade deal with the European Union.
Mercosur members Argentina, Brazil, Paraguay and Uruguay made the announcement at the summit in the Paraguayan capital. The bloc transferred its pro tempore presidency to Uruguay during the meeting.
The two sides had already held meetings in January and March. Brazilian President Luiz Inacio Lula da Silva and Japanese Prime Minister Sanae Takaichi discussed the launch at the G7 summit in June.
A joint statement said the agreement would expand market access for goods and promote cooperation and investment. The bloc signed a deal with the European Union in January after 25 years of talks, which entered into force on May 1.
Mercosur also has talks under way with Canada and plans to start negotiations with China.