Mercosur-Canada Agreement can transform trade relations with Brazil

Ua free trade agreement between Mercosur and Canada could transform economic relations between Brazil and Canada and open new investment opportunities, Lusa a Brazilian official told.

“ We understand that it can change the level of relations between Brazil and Canada, of course, with all other members of the Mercosur bloc, but especially for Brazil”, said Igor Brandão, director of operations of the Brazilian Agency for the Promotion of Exports and Investments (ApexBrasil) to North America.

In statements to Lusa, in the margins of the 19th edition of the Doing Business in Brazil conference held on Tuesday in Toronto, the responsible felt that trade negotiations could strengthen cooperation in sectors such as agriculture, the pharmaceutical industry, aviation and processed products.

“The main obstacle, what I would say, is the calendar. We need to speed up the talks, this has happened, there have been 10 rounds of negotiation, but there are still some chapters to be discussed and completed”, he explained.

According to Igor Brandão, the agreement may mainly benefit sectors with higher added value, allowing diversification of Brazilian exports beyond raw materials.

“ We understand that in the drug chain, for example, manufactured, processed foods, are sectors that will benefit and can generate a new profile of trade between Brazil and Canada,” he added.

The responsible highlighted the complementarity of the two economies, pointing out the Canadian production of fertilizers and the size of the Brazilian agricultural sector as examples of cooperation opportunities.

The aeronautics industry and critical minerals could also benefit from greater economic approximation.

“Brazil owns the second largest rare earth reserve. So, the potential of this is huge, considering the entire agenda of energy transition, of green economy ", highlighted.

Igor Brandão also stressed the Canadian experience in the mining industry, considering that technological cooperation and knowledge sharing could contribute to a long-term strategic partnership.

According to data from the Brazil-Canada Chamber of Commerce, trade between the two countries reached around USD 10.4 billion (EUR 9.3 billion) in 2025, of which USD 7.25 billion (EUR 6.5 billion) corresponded to Brazilian exports and USD 3.14 billion (EUR 2.8 billion) to imports from Canada.

The accumulated Canadian investment in the Brazilian economy was around EUR 33 billion at the end of 2025, according to the figures presented by Igor Brandão.

Despite these figures, the person responsible considers that there is a significant margin to increase trade, given the size of the two economies.

Igor Brandão also argued that Brazil and Canada should develop a long-term economic relationship, regardless of political changes in Washington, Otava or Brasilia, considering that the two countries have complementary economic interests and characteristics.

ApexBrasil also prepares three commercial missions to Toronto and Montreal by the end of the year, involving companies in the mining, food, audiovisual and creative economy.

The responsible confirmed that no new agreements were announced during the conference, but considered that the contacts made strengthened the trust of Canadian investors in the Brazilian market.

In turn, Peter Hawkins, co-chairman of the Brazil-Canada Chamber of Commerce, identified the protection of competing economic sectors as one of the main obstacles to trade negotiations between Canada and Mercosur.

“ We both produce meat and steel, and there is a concern that one market may harm the other”, Lusa said, pointing out the reserves of meat producers in the Canadian province of Alberta regarding the entry of Brazilian products.

He argued, however, that differences between the products and the technologies used could favour complementarity between the two economies rather than increased competition.

According to Peter Hawkins, more than half of the subjects under negotiation will be resolved, although important issues remain unresolved.

“If there is an opportunity to implement a free trade agreement, we can increase trade exponentially,” he said, admitting the possibility of generating another €6.2 billion in additional business.

The entrepreneur also highlighted the contacts between technology companies and representatives of the agricultural sector during the conference, as well as the preparation of new business missions in the coming months.

Among the initiatives envisaged is a mission of entrepreneurs and Canadian leaders to Florianópolis and São Paulo, as well as contacts in the clothing, animation and food sectors.

The 19th edition of Doing Business in Brazil, organized by the Brazilian-Canada Chamber of Commerce in partnership with ApexBrasil, brought together entrepreneurs, investors and institutional representatives to discuss investment opportunities, bilateral trade, infrastructure, energy and critical minerals.