Canada-Mercosur Free Trade Agreement

Canada is negotiating a free trade agreement (FTA) with Mercosur, a trading bloc and customs union consisting of Argentina, Brazil, Paraguay, and Uruguay. Mercosur as a bloc represents a real GDP of over $2.5 trillion and a population of 295 million (2020).

In November 2017, Canada and Mercosur concluded the exploratory discussions on a possible FTA. The negotiations were officially launched on March 9, 2018 in Asuncion, Paraguay. Seven rounds of negotiations have been held to date, most recently from July 29 to August 2, 2019.

A comprehensive FTA with a large, emerging market such as Mercosur would provide improved market access for Canadian goods and services, creating more opportunities for exporters to tap rapidly-growing markets. The negotiations also provide an opportunity for Canada to promote an inclusive approach to trade, and reinforce the importance of a rules-based trading system at a time of growing protectionism.