Canada-Mercosur FTA Progresses Toward 2026 Signing

OTTAWA—A Brazilian official indicated Friday that a free trade agreement between Canada and the Mercosur bloc of South American nations is progressing toward a signing by the end of 2026, eight years after negotiations began.

Paula Barboza, director for extraregional negotiations and economic governance at Brazil's Ministry of Foreign Affairs, attributed the momentum to a political push from both sides to diversify trade partners. "I think we both have these negotiations as a priority for our governments and we are keen to close them as quick as possible," Barboza said in an interview.

Canada initiated talks in 2018 with Mercosur, which comprises Argentina, Bolivia, Brazil, Paraguay and Uruguay. The bloc represents a gross domestic product exceeding US$3 trillion and a population of 282 million people. According to the Government of Canada's website, bilateral merchandise trade reached C$15.8 billion in 2024, with Canadian exports at C$3.1 billion and imports at C$12.8 billion.

A deal could eliminate or reduce tariffs by up to 35 percent on key Canadian exports, including automobiles, information and communications technology, industrial machinery, chemicals, plastics and...