From next fiscal year, the Ministry of Foreign Affairs will support Japanese companies’ expansion into regions of Latin America rich in rare earths. Japanese-descended businessmen will serve as bridges to accelerate matching between companies.
The government has positioned Latin America as a “frontier for the economy and economic security” and will support Japanese companies’ expansion by leveraging the network of Japanese-descendant communities familiar with local conditions. Brazil, as well as Peru, Mexico and Argentina, are among the regions cited as having mineral resources, while discussions toward concluding economic partnership agreements are also advancing. Through its budget request for the next fiscal year, the Ministry of Foreign Affairs will use growth-strategy ODA, with JICA taking the lead in expanding support focused on regional companies and small and medium-sized enterprises.
Specifically, the government is considering seeking the cooperation of Japanese-descended businessmen to help Japanese companies find local business partners, as well as sending Japanese corporate managers to Latin America. Although some Japanese-descendant generations rooted in local communities have weaker ties with Japan, they will take the lead in creating new business opportunities and foster the development of trust-based relationships.