Canada hopes to sign a free trade agreement with Mercosur in 2026

Canada wants to reach a trade agreement with the Mercosur group of countries before the end of the year, Foreign Minister Anita Anand said during her visit to Brazil on Tuesday. After a years-long freeze in talks between Canada and the South American bloc, Washington’s tariff offensive pushed both parties back to the table in 2025.

Anand acknowledged concerns in Canada about a potential deal’s impact on domestic farming. After over a quarter-century of on-off talks, Mercosur and the European Union struck a deal in January, with fierce resistance from European farmers having stalled the process. This cohort fears being undercut by cheaper goods from agricultural powerhouse Brazil and its neighbors. The EU must still ratify the deal, which provisionally came into effect in May.