Promoting Economic Cooperation between East Asia and Americas - Japanese views

Promoting Economic Cooperation between East Asia and Americas

  Over the past century, Japan has developed sound linkage with Latin America based on mutually complementary relationship characterized by the static comparative advantage. Japan relies on natural resource from South America and exports intermediateand capital goods mainly to Mexico where the Japanese firms expand maquiladora in-bond processing. However, such development has lost momentum for the last two decades because of the economic transformation inthe both parties. Recently, Japan envisions strategic partnership with Latin America powered by EPAs with Mexico and Chile, as well as through specific projects with Brazil such as in digital television system and bio-fuel.