Visiting Canadian Foreign Minister Anita Anand said in São Paulo on July 14 that Canada is determined to conclude a free‑trade agreement with the Southern Common Market (Mercosur) by the end of this year. The announcement comes amid persistent pressure from U.S. protectionist trade policies, highlighting Canada’s strategic move to diversify its trading partners.
Talks accelerating with clear target
Anand made the remarks at a joint press conference with Brazilian Foreign Minister Mauro Vieira. “We have a firm commitment to reaching an agreement with Mercosur, ideally by the end of the year,” Anand stated. She emphasised Canada’s intention to expand cooperation with partners beyond the United States in the coming decades.
Foreign Minister Vieira disclosed that the two sides have held six rounds of negotiations and made notable progress, though some details remain to be fine‑tuned. Earlier reports indicated that Ottawa is speeding up the negotiating process, aiming to finalise the deal this autumn, with signing possibly in September or October.
U.S. tariff pressure acts as catalyst
Negotiations for a Canada‑Mercosur FTA are not new; they stalled for years. In 2025, driven by the tariff offensive of the Trump administration, both sides returned to the table. U.S. protectionist policies are prompting countries to deepen cross‑border economic ties.
Mercosur comprises Argentina, Bolivia, Brazil, Paraguay, and Uruguay. In 2025, bilateral merchandise trade between Canada and Mercosur reached US$12.6 billion. Estimates suggest that the FTA could cover an economic bloc worth as much as US$4.5 trillion.
Domestic agricultural concerns remain
Despite progress, the deal faces headwinds in Canada. Anand acknowledged domestic worries about potential impacts on Canadian agriculture. Previously, Mercosur and the European Union reached an agreement in January after over 25 years of talks, but fierce opposition from European farmers severely delayed the process. The EU deal took effect provisionally in May but still requires final ratification. Analysts point out that Canadian agricultural stakeholders similarly fear being flooded by cheap imports from major farm producers like Brazil. (End)