Canadian agriculture industry groups are divided over how a potential free trade agreement with Mercosur could affect Canadian beef, food supply and export opportunities.
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Canadian agriculture industry groups are divided on whether a potential free trade agreement with Mercosur would benefit Canada, as both sides work toward striking a deal by the end of the year.
On Parliament Hill last month, representatives from the Canadian Cattle Youth Council warned that a Mercosur agreement could jeopardize beef production in Canada and pose risks to food safety. Canadian Cattle Youth Council President Judson Christopherson said the government warns that Canada’s food supply chains rely too heavily on foreign suppliers, adding that “Canada relies on imported beef to meet demand.” He said the problem would not be solved by increasing Canadians’ reliance on food from abroad.
Fertilizer Canada President and CEO Michael Bourque argued the opposite in a letter to Prime Minister Mark Carney earlier this year, saying a trade agreement with Mercosur is an opportunity for Canada to strengthen its position as a global supplier of crop nutrients. Bourque said potash is Canada’s largest export to Brazil and said Canada must keep the potash sector competitive. He also called the agreement aligned with Canada’s trade diversification priorities, saying it could expand market access and support long-term economic growth.
Bourque said the Mercosur bloc includes Argentina, Brazil, Paraguay and Uruguay, and that the region will play an increasingly important role in “feeding the world,” creating opportunities for Canadian suppliers of crop nutrients, agricultural technology and expertise.
Keith Currie, President of the Canadian Federation of Agriculture, said any Canada–Mercosur agreement must account for differences in production scale, cost structures, regulatory frameworks and market conditions. Currie said opportunities may exist in some sectors, but that benefits for Canadian agriculture are likely to be uneven and that any deal should protect Canadian farmers.
The federal government says it is looking to sign three major trade deals before the end of the year, including agreements with Mercosur, the Association of Southeast Asian Nations and India. Canada and Mercosur launched free trade negotiations in March 2018. Talks were paused for years due to the pandemic and resumed in October 2025, with Brazil serving as Mercosur’s co-ordinator for the Canada negotiations.
In 2024, Canada’s merchandise trade with Mercosur totalled $15.8 billion, with Canada’s exports valued at $3.1 billion and imports valued at $12.8 billion.
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