Japan and Brazil Sign More Than 80 Economic Memoranda

The governments and companies of Japan and Brazil signed more than 80 memorandums of understanding on cooperation in the fields of decarbonization and digitalization on March 26. Japanese Prime Minister Shigeru Ishiba and Brazilian President Lula da Silva attended a business seminar held in Tokyo and welcomed the signing of the agreement. With Lula’s visit to Japan as a state guest, the two countries will deepen cooperation.

Shigeru Ishiba said, “Brazil’s high-quality biofuels and Japan’s high-performance vehicles are a key combination to achieve carbon neutrality, and it is worth promoting and proposing to the world by the two countries together.”

Lula said, “I hope that Japanese and Brazilian companies will cultivate a cooperative relationship and continue to grow together. I am sure that an Economic Partnership Agreement (EPA) should be signed between Japan and Mercosur.”

The summit meeting is scheduled to be held on the evening of March 26 to finalize a five-year action plan with politics, economy and climate change as the pillars. It will also be confirmed that the leaders of one side will visit the other country once every two years, and a new diplomatic and defense dialogue will be launched.

In addition, it was decided to use official development assistance (ODA) to improve Brazilian land that has been idle due to deforestation and burning into high-quality farmland. Japan and Brazil agreed to start negotiations on a “working holiday” system that allows young people from both countries to stay and work for a long time.

In the memorandum signed on the 26th, Tsubame BHB (Yokohama City), which is engaged in ammonia production, decided to cooperate in using “green ammonia” produced from waste discharged during sugarcane processing for fertilizer. Sumitomo Corporation will introduce technology to keep pork fresh for a long time during transportation.

ANAHD signed a memorandum to purchase aircraft manufactured by Embraer.

Shigeru Ishiba introduced that Japan’s direct investment in Brazil will reach about 1.3 trillion yen after 2024, emphasizing that “this undoubtedly reflects the expectations of Japanese companies for Brazil.”

Brazil has the largest economy and population in South America. Japan has been importing iron ore, which is indispensable for manufacturing, and soybeans, which are needed for food production, from Brazil. Exports of industrial products such as auto parts from Japan to Brazil. The two countries have become indispensable to each other in terms of economic security.

Japan has always attached importance to Brazil as the key to cooperation with the “Global South” of emerging and developing countries. Although Brazil is a member of the BRICS, which consists of major emerging market countries such as Russia, China, and India, it shares the importance of rule of law and international cooperation with Japan.

2025 marks the 130th anniversary of the establishment of diplomatic relations between Japan and Brazil. The Japanese government hosted Lula as the first state guest since US President Trump (first term) in 2019.