Japanese Prime Minister Sanae Takaichi and Brazilian President Luiz Inacio Lula da Silva confirmed that Japan will begin negotiations on an economic partnership agreement with Mercosur. The confirmation took place in Evian-les-Bains, France, on the sidelines of the Group of Seven summit. Mercosur, the Southern Common Market, includes Brazil, Argentina, Bolivia, Paraguay, and Uruguay as its five full members.

According to the article, Japan aims to expand market access for automobiles and other products through the pact. Tokyo also seeks to diversify supplies of critical minerals, a goal highlighted by recent restrictions China has imposed on rare earth exports. The article describes the region as resource-rich and states that Japan seeks to strengthen ties with the area to promote trade. The article attributes the intensifying trade war to U.S. President Donald Trump.

The article states that business communities in Japan and South America have lobbied heavily for the agreement. A possible economic partnership agreement between Japan and Mercosur has been called the 'last mega-FTA'. The European Union and Mercosur concluded FTA negotiations in December, following years of effort by the European Commission to finalize a deal since 2000.

The article title characterizes Japan's approach to Mercosur talks as holding back, in the context of withering global free trade. According to bilaterals.org, the Japanese government is grappling with how and whether to begin negotiations on joining Mercosur. The Southern Common Market has a population of about 300 million.