Negotiations to finalize the free trade agreement between Mercosur and Canada advanced with a meeting of thematic groups in Toronto, Canada, from May 25 to 29. The 10th Round of Negotiations deepened discussions on the consolidation of the treaty, which had resumed in October of last year.

The highlight of the meeting was the in-person sessions held by technical groups on the trade in goods, services, and financial services; the temporary entry of business travelers; rules of origin; intellectual property; bilateral safeguards; sustainable development; inclusive trade; and legal and institutional issues.

In addition to the technical discussions, Canada’s Minister of International Trade Maninder Sidhu met with chief negotiators from Mercosur.

At the previous meeting, in late April, discussions focused on rules of origin, intellectual property, sanitary and phytosanitary barriers, and trade and sustainable development.

The parties expect to finalize the agreement at further meetings in the first half of the year, with dates to be determined.

Brazil and Canada

In 2025, trade between Brazil and Canada saw a significant increase after both countries were affected by trade barriers imposed by the US government. Bilateral trade reached USD 10.4 billion last year. Brazilian exports to the Canadian market totaled USD 7.3 billion in 2025 – a 14.8 percent surge over the previous year and a historic record for the series.

Mercosur

The resumption of bloc-level negotiations has been a priority for the current Mercosur administration, chaired by the Paraguayan government. The agreement with the European Union entered into force on May 1.

The bloc has also made progress in discussions with other Latin American countries, such as Chile, Ecuador, Colombia, and Peru, as well as in talks with the United Arab Emirates and the EFTA, comprising Iceland, Liechtenstein, Norway, and Switzerland.