Canada and South America’s Mercosur bloc are moving swiftly toward a free-trade agreement, potentially finalised before September 2026.
Negotiations, described by officials as progressing exceptionally well, are scheduled to continue next month in Brasilia, according to three sources.
An Argentine diplomat said the agreement could be signed by September or October, marking a year since talks formally restarted.
Another official based in Brazil said negotiations are moving at record speed, with countries likely to reach a deal this year.
Canada is seeking to diversify trade amid uncertainty caused by U.S. tariffs, making South American markets increasingly critical for exports.
Mercosur, a major exporter of beef, soy, and minerals, would gain wider access to developed markets and attract new investment.
Canadian Prime Minister Mark Carney is expected to visit Brazil in the next quarter, possibly boosting efforts to finalise the deal.
Although no announcement is planned for the visit, officials said it could help accelerate discussions and strengthen bilateral momentum.
Canada’s trade minister, Maninder Sidhu, is reportedly eager to conclude the agreement this year, meeting his Brazilian counterpart in Cameroon.
Renewed momentum follows months of technical exchanges after stalled talks between Canada and Mercosur were relaunched last year, resuming stalled negotiations.
Mercosur includes Argentina, Brazil, Paraguay, and Uruguay, with Bolivia expected to become a full member in 2028, expanding bloc influence.
Ontario officials have visited Argentina and Uruguay to support the deal, meeting with technology and mining industry leaders to strengthen partnerships.
Ontario’s trade minister Victor Fedeli highlighted that Canada is serious about diversifying away from U.S. dependence, seeking new trade and investment opportunities.
The Mercosur-Canada talks follow Mercosur’s January trade agreement with the European Union, concluded after 25 years of complex negotiations and political debate.
Officials said Canada and Mercosur aim to conclude the deal this year, marking a strategic shift in North and South American trade relations.