Ottawa (TDI): Canada is ramping up efforts to diversify its global trade portfolio by reviving negotiations with Mercosur, the South American trade bloc, amid ongoing discussions with the United States over a bilateral trade agreement.
International Trade Minister Maninder Sidhu said there’s “mutual interest” in resuming talks with Mercosur, which includes Brazil, Argentina, Paraguay, and Uruguay, as Ottawa looks to lessen its heavy reliance on the US, its largest trading partner.
“I had productive conversations with Brazil’s foreign minister. There’s definitely an appetite on both sides to explore deeper trade ties,” Sidhu told Reuters on Thursday.
His remarks come as Prime Minister Mark Carney works to secure a fresh trade deal with US President Donald Trump by August 1, aimed at easing tariffs on Canadian goods. But the Canadian government is also pressing forward with a broader strategy to expand access to international markets and protect its economy from US policy shifts.
Read More: Trump Imposes 35% Tariff on Canada
Canada’s trade with the US reached over C$1 trillion ($727 billion) last year. However, Canadian exports to the US fell to 68% of total exports in May, the lowest share on record, down from a 75% monthly average last year. Analysts say the drop reflects the growing effort by Canadian companies to tap new markets.
“Canadian firms have been overexposed to the US for too long,” Sidhu said. “My role is to go out there and open new doors, for trade and beyond.”
Talks with China are also ongoing, despite long-standing trade tensions. Sidhu said “frank discussions” are taking place over tariffs impacting exports such as canola, beef, and pet food.
Read More: Canada Appoints New High Commissioner to Pakistan
Meanwhile, a diplomatic thaw with India is seen as a “positive development” for restoring and boosting trade between the two countries.
Canada already holds 15 free trade agreements with 51 countries, covering access to 1.5 billion consumers worldwide. In his first two months in office, Sidhu signed a free trade deal with Ecuador and an investment promotion agreement with the UAE. He said negotiations are also progressing with ASEAN nations and Indo-Pacific countries, including Indonesia and the Philippines.
Farkhund Yousafzai is an Associate Editor at The Diplomatic Insight.
