Canada and South American bloc Mercosur will resume negotiations for a free-trade agreement, Brasilia and Ottawa announced on Monday after a gathering in Brazil’s capital.
Mercosur, whose rotating presidency is currently held by Brazil, is a significant exporter of beef, soybeans and minerals. Besides Brazil, the bloc includes Argentina, Uruguay and Paraguay, while Bolivia is within the technique of becoming a full member.
“We have now directed our senior trade officials to interact in discussions, including a gathering of chief negotiators in early October, so as to resume Free Trade Agreement negotiations,” Brazil and Canada said in a joint statement.
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Canada signaled renewed interest in restarting talks with Mercosur last month, as a part of a broader push to diversify trade away from america amid uncertainty brought on by tariffs imposed by U.S. President Donald Trump.
“At a time when rules-based trading is being threatened, we want to face with like-minded partners, as Brazil is, to essentially construct on that structure, to make sure that that structure exists, to advertise more trade,” Canadian Trade Minister Maninder Sidhu told reporters in Brasilia.
Talks between Canada and Mercosur have been stalled since 2021 as South American countries focussed on local issues equivalent to elections, before Trump’s policy shifts reset the trade agenda.
“Brazil and Canada have been affected by measures that distort the legitimate flow of products and investments, adopted without technical justification,” Brazilian Foreign Minister Mauro Vieira said, calling the October meeting “essential” for the progress of the talks.
(Reporting by Lisandra Paraguassu in Brasilia; Writing by Andre Romani; Editing by Brendan O’Boyle and Kylie Madry)