Leaders of Japan, Brazil call for peaceful settlement of international disputes

Japanese Prime Minister Shinzo Abe and Brazilian President Dilma Rousseff have called for the resolution of international disputes based on international law and not through force, in an apparent reference to China's increasing assertiveness.

Abe also touched on Japan's relations with China, which is a partner of Brazil in the BRICS club also grouping Russia, India and South Africa.

"While we haven't been able to hold summit meetings, we are tied to each other inescapably in the area of economy," the Japanese leader said, acknowledging rocky relations between Tokyo and Beijing stemming from a territorial dispute and historical issues.

In a meeting with Rousseff in Brasilia on Friday, Abe endorsed loans that will help the South American nation develop offshore oil production and expand its soybean and corn crops.

Japan will lend US$500 million for the construction of eight ship hulls for offshore oil platforms and US$200 million for the production of soybeans and corn. The two leaders also signed mutual cooperation treaties in the infrastructure, pharmaceutical, energy, mining and educational areas. They also discussed ways to increase bilateral trade, which last year amounted to US$15 billion.

Abe said Brazil "presents great opportunities for investment". In addition to its potential for offshore oil production and transport infrastructure, he noted the South American country's domestic market of about 200 million people.

"All this has reignited the interest of Japanese companies," he said.