The Mercosur regional trade bloc and Canada are set to resume negotiations regarding a free-trade agreement, as confirmed by Brazil on Monday, amid escalating tensions surrounding US tariffs that have unsettled global commerce. Brasília, currently presiding over Mercosur, has announced that chief negotiators from Canada and the bloc, which includes Argentina, Brazil, Bolivia, Paraguay, and Uruguay, are scheduled to convene in October to revive discussions that have been at a standstill.
A joint statement from both parties described the action as “a timely step towards greater economic diversification.” Brazil’s Foreign Ministry stated, “The resumption of trade negotiations between Mercosur and Canada is a clear sign of our shared commitment to deepening mutually beneficial economic ties and opening up new and relevant opportunities.” Negotiations reached an impasse in 2019 following the conclusion of the seventh round of discussions. Currently, both parties are advocating for the resumption of discussions in the context of the trade conflict instigated by US President Donald Trump’s tariffs. Earlier this month, Washington imposed 50 percent duties on Brazilian goods, despite maintaining a trade surplus with Latin America’s largest economy. Brazil intends to contest the surcharges at the World Trade Organisation (WTO).
President Luiz Inácio Lula da Silva has committed to broadening trade partnerships beyond the United States, thereby creating new opportunities for Brazilian exports. Canada and Brazil emphasized their “historic commitment to open, fair and sustainable trade” and vowed to implement joint strategies “to promote bilateral and regional prosperity within the global trading system.” Delegations are set to convene in Toronto this September to investigate new avenues for trade and investment. In Brazil, the contention with Washington is intricately woven into the fabric of domestic politics: the US tariffs are partially associated with the ongoing coup trial of former far-right president Jair Bolsonaro. Trump has characterized the proceedings as a “witch hunt” orchestrated by Brazil’s Supreme Court.