Canada seeks to strengthen trade ties with Brazil through the Mercosur-Canada Free Trade Agreement, which remains unfinalized despite ongoing negotiations since 2018. Amid U.S. tariff pressures, Canadian officials view this situation as an opportunity to diversify trade partnerships. Expanding trade may benefit sectors such as oil, gas, and renewable energy, as well as the sugarcane industry.
Canada is actively seeking to enhance its trade relations with Brazil, particularly in the context of the Mercosur-Canada Free Trade Agreement. Evelyne Coulombe, Canada’s ambassador to Germany, expressed optimism about finalizing this agreement, stating, “I believe there are opportunities to deepen our trade relationship.” The Mercosur-Canada partnership, initiated in March 2018, has seen various rounds of negotiations but remains incomplete.
The backdrop for this renewed focus on trade comes amid the ongoing trade tensions initiated by U.S. President Donald Trump, who recently imposed substantial tariffs on Canadian and Mexican imports, as well as on Chinese products. Canada reacted by announcing tariffs on $107 billion worth of U.S. goods. Coulombe referred to the tariffs as a “shock to Canada,” noting the long-standing history of trade cooperation between the countries.
In light of these challenges, Coulombe identified opportunities to strengthen business ties with Brazil, Germany, and other Latin American countries, emphasizing the need for Canada to diversify its trade partnerships. “I must say, the timing is excellent. We need to diversify our markets,” she remarked, highlighting a significant event for over 200 Canadian companies at Hannover Messe 2025.
In 2024, Brazilian exports to Canada increased by 9.44%, reaching $6.31 billion, primarily driven by gold, cane sugar, aircraft, and calcined alumina. Conversely, Canadian imports dropped by 17.5%, mostly due to exchange rate fluctuations, totaling $2.7 billion.
Coulombe pointed out ideal areas for cooperation, including the oil and gas industry and the renewable energy sector, facilitating technology exchanges and scientific collaborations. The sugarcane industry is also on Canada’s radar, supported by the establishment of a business development office by the Brazil-Canada Chamber of Commerce in São Paulo to explore new ventures.
In conclusion, Canada is strategically positioning itself to enhance trade with Brazil amidst complex international trade dynamics. By pursuing the Mercosur-Canada Free Trade Agreement and diversifying its trade relationships, Canada aims to capitalize on emerging opportunities in various sectors, notably renewable energy and technology. This initiative reflects a proactive approach to overcoming challenges posed by existing trade tensions with the United States.
Original Source: valorinternational.globo.com
