C  Latin America and the Caribbean

   Latin America and the Caribbean region have a population of 550 million (roughly the same as ASEAN) and their regional GDP of some 2.46 trillion dollars (approximately 2.8 times that of ASEAN) makes it a major market. The region's presence is increasing still further as a result of progress in economic integration and the conclusion of free trade agreements with countries outside the region. It has been the focus of much attention because of high resource prices in recent years and because of its role as a supply region for an abundance of energy, mineral, and food resources. Under these circumstances, the region has been riding a stable growth trajectory in recent years, with regional growth of 4.5% in 2005 and forecast at 5.3% for 2006. (*1)

   2006 was a year of elections in Latin America. Twelve countries had presidential elections, including Peru, Mexico, Brazil, Nicaragua, Venezuela, and Chile, whose presidential runoff election was held in January. The issues for the candidates in many of the elections were their stances on the reduction of poverty and income gaps in society, which have also been historical issues. In Brazil, Chile, Mexico, and Colombia, voters chose to continue on a consistent line, whereas in Venezuela, Bolivia, and Ecuador, resource nationalism (*2) was raised to various degrees in campaign speeches and candidates who made a point of socioeconomic policy that would address the low-income segment were elected. In addition, it is noteworthy that even candidates who were elected committing to maintain a consistent line incorporated the further reform of socioeconomic policy prominently in their campaign pledges. This can be considered a reflection of the fact that in Latin America, the maintenance of a free and open economy is regarded as essential policy for the realization of sustained prosperity, but at the same time, in order to be elected and maintain a mandate under the democratic process, it is necessary to show the intention of addressing the historical issues of deep-rooted poverty and the social gap.

  Japan is geographically remote from Latin America and the Caribbean, yet Japan depends on the countries of Latin America for 52% of its silver imports, 50% of its copper ore, 17% of its iron ore, 68% of its molybdenum, (*3) and 18% of its soybeans, a fact that is giving the region a position of importance as a supply region for mineral and food resources. The volume of trade with Japan amounts to some 4.53 trillion yen per annum (exports: approximately 2.76 trillion yen; imports: 1.77 trillion yen [2005 customs clearance statistics]). Moreover, Japan has a special connection with Latin American countries owing to the existence of about 1.5 million Japanese descendents mainly in Brazil that make up roughly 60% of the total number of Japanese descendents living overseas. There is also a well-established relationship of trust with the region as a partner in the international community, with many countries in the region supporting Japan's bid to become a permanent member of the United Nations Security Council as well as Japan's stance on issues regarding North Korea.