Canada and Brazil are currently in negotiations for a comprehensive Free Trade Agreement (FTA) through the Canada-Mercosur Free Trade Agreement talks, which are expected to be signed by late 2026. While no bilateral FTA currently exists, the agreement aims to deepen economic ties with South America’s largest market, focusing on key sectors such as agriculture, fertilizers, aerospace, and automobiles.
Key Aspects of Current Trade Relations
Negotiation Status:
Negotiations with the Mercosur bloc — Brazil, Argentina, Paraguay, Uruguay, and Bolivia — began in 2018, with significant political momentum in 2025 and 2026 to finalize a deal.
Trade Volume and Goods:
In 2024, Canada-Mercosur trade totaled CA$15.8 billion. Key Canadian exports to Brazil include potassic fertilizers, gas turbines, and aircraft, while imports include gold, aluminum oxide, and sugar.
Existing Agreements:
A 1984 tax treaty exists to avoid double taxation. Other agreements cover science and technology, agricultural research, and air transportation.
Potential Impacts:
The FTA is intended to help Canadian producers compete against European and Chinese firms in the region. However, some sectors, such as Canadian beef producers, have raised concerns about increased competition.
The negotiations aim to facilitate trade and reduce tariffs, particularly in key areas such as auto parts and agriculture.
Need Help Understanding Canada-Brazil Trade Opportunities?
Argo Customs Brokers can assist importers and exporters in understanding how future trade agreements may affect duties, tariffs, documentation, and customs compliance. Contact Argo Customs Brokers today for guidance on cross-border trade planning and import/export requirements.