Prospects for Closer Economic Relations between Latin America and Asia

Regional integration such as NAFTA, MERCOSUR and FTAA have been flourishing in Latin American countries in the 1990s. In addition to these multi-countries FTAs, many bilateral FTAs have also emerged both among Latin American countries and between them and extra-regional countries. The purpose of this paper is to analyze the leading factors that are behind the proliferation of intra-regional and inter-regional FTAs of Latin American countries. We also discuss the prospects for bilateral FTAs between Latin America and Asia, particularly focusing on Japan-Mexico and Japan-Chile FTA. Finally, a new approach to cooperation between East Asia and Latin America, the East Asia Latin America Forum (EALAF), will be examined.