Canada is actively expanding trade relations with the Mercosur bloc to reduce dependence on the U.S. market and boost exports to other regions.
Canada's Minister of International Trade Sidhu stated that Ottawa and the Mercosur group are getting closer to a free trade agreement while also developing new trade agreements with Asian and Middle Eastern regions.
MAIN CONTENT
Canada is intensifying negotiations with Mercosur to diversify its export markets.
Dependence on the U.S. is gradually decreasing as exports to the U.S. account for only 68% of total export volume.
Canada is expanding trade cooperation with ASEAN, India, and Middle Eastern countries.
How far along is Canada in negotiations with Mercosur and what are the prospects?
A representative of the Canadian government stated that Mercosur and Canada are showing significant interest in completing the free trade agreement. Minister Sidhu emphasized positive progress following discussions with Brazil's foreign minister, a key member of Mercosur.
"We believe in the great trade potential when cooperating with Mercosur and are working to finalize the agreement soon to expand opportunities for Canadian businesses."
Jagmeet Sidhu, Canada's Minister of International Trade, July 2025
The Mercosur group, including Brazil, Argentina, Paraguay, and Uruguay, has negotiated with Canada several times but no official agreement has been signed yet. Promoting meetings and exchanges continues to be prioritized to quickly reach positive results.
What agreements has Canada recently achieved?
In the first two months of taking office, Minister Sidhu successfully signed a trade agreement with Ecuador and an investment promotion agreement with the UAE, expanding markets beyond the northern United States.
Dialogues with ASEAN countries such as Indonesia, the Philippines, and many countries in the Indo-Pacific region have also been initiated, demonstrating Canada's proactive approach in its market diversification strategy.
Why does Canada want to reduce dependence on the U.S. market?
Official data shows that the share of exports to the U.S. in May 2025 dropped to 68%, compared to an average of 75% a year earlier, marking the lowest level ever. This reflects the intention to gradually reduce dependence on the U.S. market.
"My mission is to open the door to cooperation, helping Canadian businesses not only rely on the U.S. market but also diversify exports and supply sources in the defense sector."
Jagmeet Sidhu, Canada's Minister of International Trade, July 2025
The Canadian government has also allocated an additional 9 billion CAD for defense to meet NATO standards while prioritizing close cooperation with the European Union and other international partners in this field.
Which markets does Canada prioritize to diversify its exports?
With 15 signed trade agreements covering 51 markets and about 1.5 billion consumers, Canada continues to expand relations with ASEAN, China, India, and Middle Eastern countries. Recent negotiations show that Ottawa aims to seize every opportunity to enhance the competitiveness of Canadian goods.
In addition, the government is also addressing technical issues related to tariffs with China concerning canola, beef, and animal feed to protect the exporters' interests.
Frequently Asked Questions
Which countries are included in the Mercosur group?
Mercosur includes Brazil, Argentina, Paraguay, and Uruguay, a regional trade alliance in South America with great potential for bilateral cooperation with Canada.
How many trade agreements does Canada have?
Canada holds 15 trade agreements with 51 markets, expanding to about 1.5 billion global consumers.
How does reducing dependence on the U.S. affect the Canadian economy?
Reducing the share of exports to the U.S. helps Canada diversify its markets, increase resilience against trade risks, and enhance international competitiveness.
What new plans does Canada have in trade relations with ASEAN?
Canada has initiated negotiations with ASEAN countries such as Indonesia and the Philippines to promote more effective bilateral trade and investment.
How is the Canadian government supporting businesses in the defense sector?
Canada is allocating an additional budget of 9 billion CAD to develop the defense industry while collaborating with the EU and global partners to expand supply opportunities for domestic businesses.
Source: https://tintucbitcoin.com/canada-thuc-day-thuong-mai-mercosur/
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