Canada to resume free trade talks with Mercosur

August 28, 2025

Canada and South American bloc Mercosur will resume negotiations for a free-trade agreement, Brasilia and Ottawa announced on Monday, August 25th, after a meeting in Brazil's capital.

Mercosur, whose rotating presidency is currently held by Brazil, is a major exporter of beef, soybeans and minerals. Besides Brazil, the bloc includes Argentina, Uruguay and Paraguay, while Bolivia is in the process of becoming a full member. Canada signaled renewed interest in restarting talks with Mercosur last month, as part of a broader push to diversify trade away from the United States amid uncertainty caused by tariffs imposed by U.S. President Donald Trump.

Talks between Canada and Mercosur have been stalled since 2021 as South American countries focused on local issues such as elections, before Trump's policy shifts reset the trade agenda.

The preceding summary is sourced from the following Reuters article: South American bloc Mercosur and Canada to resume talks for free-trade agreement | Reuters

Topic(s)

Trade Agreements

International Trade and Border Management

Information source

International News Channel

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