Canada seeks to strengthen trade with Brazil through the Mercosur-Canada Free Trade Agreement, delving into key sectors like oil, gas, and agriculture. Recent U.S. tariffs prompted Canada to reinforce its trading strategy by diversifying partnerships, highlighted by a rise in Brazilian exports, and focusing on technology-sharing and market potentials.
Canada aims to strengthen trade relations with Brazil through the Mercosur-Canada Free Trade Agreement. Evelyne Coulombe, Canada’s ambassador to Germany, expressed optimism about deepening trade ties, particularly following recent free trade agreements with Chile and Ecuador. The discussions for the Mercosur-Canada partnership, initiated in March 2018, continue but remain unfinalized, presenting potential opportunities amid the current tariff conflict with the United States.
Following U.S. President Trump’s imposition of tariffs on Canada and Mexico, Canada retaliated with tariffs on $107 billion of U.S. goods. Coulombe described Trump’s trade war policy as shocking, given the longstanding free trade relationship between Canada and the U.S. She emphasized the need for Canada to diversify its business partners to reduce dependency on a single market.
In 2024, Brazilian exports to Canada increased by 9.44% to $6.31 billion, showcasing key products like gold, calcined alumina, cane sugar, and aircraft. However, imports from Canada dropped by 17.5% to $2.7 billion, affected by currency fluctuations. Coulombe noted that the oil and gas industry, along with the renewable sector, stands to benefit significantly from improved trade relations and technology sharing between the two countries.
Canada’s efforts to enhance trade ties with Brazil reflect its intent to diversify markets amid rising U.S. tariffs. As both economies explore mutual benefits, key sectors such as energy, IT, and agriculture could see significant collaboration. The ongoing negotiation of the Mercosur-Canada Free Trade Agreement could play a crucial role in solidifying these relationships, especially as trade volumes indicate potential growth.
Original Source: valorinternational.globo.com
