Canada seeks to deepen trade ties with Brazil amid Trump’s pressures

Canada hopes to advance several trade agreements with Brazil under the framework of the Mercosur-Canada Free Trade Agreement in the short term. “I believe there are opportunities to deepen our trade relationship. We recently signed long-term free trade agreements with Chile and Ecuador. I think it would be great if we could finalize the free trade agreement between Canada and Mercosur,” said Canada’s ambassador to Germany, Evelyne Coulombe.

Launched in March 2018, the Mercosur-Canada partnership has gone through multiple negotiation rounds, but the agreement has yet to be concluded. “This is a significant opportunity. Every crisis or challenge brings new possibilities,” the diplomat emphasized, referring to the ongoing tariff war with the United States.

On Tuesday (4), U.S. President Donald Trump imposed a 25% tariff on all imports from Canada and Mexico and a 20% tariff on Chinese products. The decision set off a wave of retaliatory measures among affected countries. Just hours later, Canada responded by gradually imposing tariffs on $107 billion worth of U.S. goods over 21 days.

Trump’s trade war policy came as a “shock to Canada,” Ms. Coulombe noted. “We have been neighbors and allies for many years under a free trade agreement, so it was surprising to be targeted with tariffs. We invested $1 billion to strengthen our border, address fentanyl trafficking—which has fueled overdose crises in the U.S.—and manage migrant crossings,” she said.

“I see this as an opportunity to develop business ties with Brazil, Germany, and Europe—and I would extend that to Latin America as well. After all, relying too much on a single partner is not a great strategy,” she added during an event announcing the participation of over 200 Canadian companies in Hannover Messe 2025, the world’s largest industrial technology fair. “I must say, the timing is excellent. We need to diversify our markets.”

In 2024, Brazilian exports to Canada grew by 9.44% compared to the previous year, reaching $6.31 billion. The main exported products in value terms were gold, calcined alumina, cane sugar, and aircraft. Meanwhile, imports from Canada fell by 17.5% year over year, totaling $2.7 billion, mainly due to the exchange rate.

According to Ms. Coulombe, expanding trade ties between Brazil and Canada could particularly benefit the oil and gas industry and the renewable energy sector through technology-sharing initiatives. “We can explore more opportunities in the IT sector, exchange technologies, and also collaborate in scientific research,” she noted.

Another sector of interest for Canada is the sugarcane industry and agrotechnology companies. Earlier this year, the Brazil-Canada Chamber of Commerce opened a business development office in Ribeirão Preto, São Paulo, to identify new commercial opportunities.

By Tatiana Schnoor

Source: Valor International

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