Canada and Mercosur: Forging a New Trade Path

Canada and South America's Mercosur bloc progress towards a free-trade agreement, expected to be signed in late 2023 and finalized by 2026. Canadian Prime Minister Mark Carney's upcoming visit to Brazil aims to accelerate negotiations, reflecting efforts to diversify trade and expand market access for both regions.

Canada and South America's Mercosur bloc are making strides toward establishing a free-trade agreement, with a signing possibly slated for later this year, sources told Reuters. Officials from Canada, Argentina, and Brazil expect the deal could conclude by 2026 if talks remain fruitful.

The negotiations, moving at unprecedented speeds according to a Brazilian diplomat, may see a formal agreement by September or October, a year after talks resumed. Canadian Prime Minister Mark Carney's projected visit to Brazil could further advance these discussions.

This renewed vigor in talks follows efforts to reboot negotiations stalled since 2021. The agreement could widen market access for Mercosur, while supporting Canada's push to diversify trade, away from reliance on the U.S. amid recent geopolitical shifts. Ontario officials have been active in laying groundwork for such alliances.

(With inputs from agencies.)