Canada and Mercosur Set to Reignite Trade Talks

Canada and the Mercosur bloc have announced the renewal of negotiations for a free-trade agreement following a meeting in Brasilia. Talks had previously stalled in 2021, faced with local elections in South America and shifting U.S. trade policies. Both parties aim to diversify trade partnerships.

In an effort to boost economic ties, Canada and the South American trade bloc Mercosur have announced plans to resume negotiations on a long-discussed free-trade agreement. The announcement came after a high-profile meeting in Brasilia, signaling a renewed commitment to economic cooperation.

Mercosur, currently under the rotating presidency of Brazil, is recognized for exporting key commodities such as beef, soybeans, and minerals. Besides Brazil, the trade bloc includes Argentina, Uruguay, and Paraguay, with Bolivia in the process of becoming a full member. "We have directed our senior trade officials to engage, including convening a meeting of chief negotiators in early October," both nations said in a joint statement.

The revival of talks comes amidst Canada's strategic move to diversify its trade relationships and reduce reliance on the United States. Canadian Trade Minister Maninder Sidhu emphasized the importance of building alliances with partners like Brazil to sustain a rules-based trading structure, especially in light of recent protectionist measures introduced by the U.S. under President Donald Trump. The discussions had stalled since 2021 due to South America's focus on local elections and changes in U.S. trade policy. Brazilian Foreign Minister Mauro Vieira stressed the significance of the upcoming October meeting in advancing the negotiations.

(With inputs from agencies.)