Mercosur and Canada conclude new round of negotiations for trade agreement

Exportações Amazonas
Photo: Bruno Leão/ Sedecti-AM
Mercosur and the Canadian government concluded this week a new round of negotiations aimed at a trade agreement between the parties, said the ministries of Foreign Affairs, Development, Industry, Commerce and Services and Agriculture in a joint note this Saturday (30).
According to the document, after this round of talks between negotiators from Mercosur and Canada, which included the participation of the Minister of International Trade of Canada, Maninder Sidhu, five chapters of a future agreement have advanced to the stage of concluding negotiations.
"The meeting included face-to-face meetings of technical groups on trade in goods, services and financial services, temporary entry of people for business, rules of origin, intellectual property, bilateral safeguards, sustainable development, inclusive trade and legal and institutional topics", states the note.
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This week, the minister of Development, Industry, Commerce and Services, Márcio Rosa, said that 60% of the trade agreement between Mercosur and Canada has already been agreed and that negotiations could be concluded this year.
The flow of trade between Brazil and Canada last year was US$10.4 billion and Brazilian exports to the Canadian market totaled US$7.3 billion, growth of 14.8% compared to the previous year and a historic record, said the joint note from the ministries.
Canada is the eighth main destination for Brazilian exports, still according to the statement from the departments.
"Among the main exported products, aluminum, nickel and copper ores, sugar, coffee, aircraft, as well as civil engineering facilities and equipment stood out", states the note.
The advance occurs amid expectations that the free trade agreement between Mercosur - formed by Argentina, Brazil, Paraguay and Uruguay - and Canada could be concluded in 2026, according to sources with knowledge of the negotiations.
There is even an assessment that the agreement could be reached before September, if the current pace is maintained.
A new round of negotiations is already scheduled for next month, in Brasília, continuing the process resumed last year, after a period of interruption since 2021. Interlocutors classify the current pace as "accelerated" and say that the talks have progressed consistently.
On the Canadian side, the interest in concluding the agreement this year has also been flagged. The Minister of International Trade, Maninder Sidhu, is described by sources as one of the main defenders of advancing negotiations, in a context of seeking market diversification.
This movement occurs amid uncertainties in global trade and Canada's need to reduce its dependence on the United States, its main economic partner. In this scenario, South America, especially Brazil, has gained strategic relevance.
For Mercosur, the agreement with Canada is seen as an opportunity to expand access to developed markets and attract investments, especially in sectors such as mining and infrastructure. The bloc is also trying to capitalize on the moment after the recent progress of the agreement with the European Union.
The political agenda should contribute to boosting the negotiations.
Canadian Prime Minister Mark Carney is expected to visit Brazil in the coming months. Although there is no formal announcement expected during the visit, the expectation is that the meeting will help speed up the conclusion of the agreement.

Source: G1