Latin America

   Latin America has been on a path of stable economic growth in recent years. This has emerged against a background of its vast intraregional market and progress in regional integration as well as the promotion of FTAs with countries outside of Latin America. Countries rich in natural resources benefit from high prices of natural resources and energy. During presidential elections held in 12 countries in 2006, all candidates put emphasis on the importance of enhanced social public policy, and momentum has been rising for correcting the economic disparity in the society, which is a historical challenge for countries in the region.

   Under the Vision for a New Japan-Latin America and the Caribbean Partnership announced by Prime Minister Koizumi in 2004, relations between Japan and Latin America and the Carribbean, particularly economic relationship, have seen a significant revitalization. The economic partnership agreement (EPA) that entered into force between Japan and Mexico in 2005 has resulted in a dramatic expansion of trade and investment relations between the two countries. Japan and Chile also reached an agreement in principle on major elements of the EPA in September 2006. In addition, the Japan-Central America Business Forum was held, and efforts have been intensified in a number of new fields, such as digital televisions, biofuels, and clean development mechanism (CDM) cooperation. Active exchanges of VIPs between Japan and Latin America and the Caribbean included the Crown Prince's visit to Mexico in March and Prince Akishino's visit to Paraguay in November. From Latin America and the Caribbean, Salvadoran President Antonio Saca and other dignitaries visited Japan, thereby reinforcing bilateral ties.