Canada is looking to strengthen trade ties with Brazil through the Mercosur-Canada Free Trade Agreement, initiated in 2018 but yet to be finalized. Evelyne Coulombe, Canada’s ambassador to Germany, highlighted opportunities for collaboration across various sectors, particularly amidst challenges arising from U.S. trade policies. Recent trade figures show an increase in Brazilian exports to Canada while imports from Canada decreased significantly. The expansion of trading relations could benefit industries like oil, gas, and technology.
Canada is actively pursuing to enhance its trade relations with Brazil through the Mercosur-Canada Free Trade Agreement. Evelyne Coulombe, Canada’s ambassador to Germany, highlighted the potential for developing deeper trade links following recent free trade agreements with Chile and Ecuador, emphasizing the desire to finalize negotiations with Mercosur.
The Mercosur-Canada partnership was initiated in March 2018 and has since experienced several rounds of negotiations without conclusion. Ms. Coulombe stated, “This is a significant opportunity. Every crisis or challenge brings new possibilities,” referencing the recent trade conflicts involving the United States.
In the backdrop of U.S. President Trump imposing substantial tariffs on imports from Canada and Mexico, as well as on Chinese products, Canada swiftly laid out plans to retaliate with tariffs on $107 billion worth of U.S. goods. Ms. Coulombe described Trump’s trade policy as a shock, saying, “We have been neighbors and allies for many years under a free trade agreement… it was surprising to be targeted with tariffs.”
She envisions an expansion of business relations with Brazil, Germany, and Latin America, advocating for market diversification in light of the current trade climate. Speaking at an event promoting participation at the Hannover Messe 2025, she remarked, “We need to diversify our markets.”
Recent trade statistics show Brazilian exports to Canada rose by 9.44% in 2024, amounting to $6.31 billion, driven primarily by gold and sugarcane products. Conversely, Canadian imports to Brazil fell 17.5%, resulting in $2.7 billion, influenced by exchange rate fluctuations.
Coulombe pointed out that strengthening trade ties between Brazil and Canada could greatly benefit sectors such as oil and gas, renewable energy, and shared technology initiatives. Additionally, agrotechnology and the sugarcane industry are of significant interest, with initiatives like a new business development office launched in São Paulo by the Brazil-Canada Chamber of Commerce to uncover commercial opportunities.
In conclusion, Canada is seeking to deepen trade relationships with Brazil amidst the challenges posed by U.S. trade policies. The existing Mercosur-Canada partnership presents significant potential for expanded economic cooperation, particularly in key sectors such as energy, technology, and agrotechnology. As both nations explore opportunities to enhance trade ties, diversification of markets remains a pivotal strategy for Canada.
Original Source: valorinternational.globo.com
