A Virtuous Cycle of Integration: The Past, Present, and Future of Japan-Latin America and the Caribbean Relations

Japan and Latin America and the Caribbean (LAC) enjoy a diverse and longstanding economic relationship. The ties between the two economies encompass trade and foreign direct investment in a range of industries, a robust cooperation agenda between governments, and significant migration flows, bringing considerable benefits to both sides and belying the common impression that LAC-Asia integration is only about commodities-for-manufacturing trade. This report describes how the relationship has evolved over the course of more than a century, highlighting the role of both firms and governments in discovering new areas for mutually beneficial exchange and encouraging a broader distribution of development gains. Despite these successes, there are still opportunities for LAC governments to deepen integration with Japan. In a challenging global economic environment, the report suggests how governments can ensure this relationship continues to prosper in the future.