Canada Joins the Queue of Powers Courting Mercosur with 2026 Free-Trade Deal

Trade · Economy Key Facts —Target Negotiations relaunched in October 2025 aim for a deal by September or October 2026, giving Canadian firms a first-mover advantage over the US. —Market Size Mercosur has a combined GDP of nearly US$3 trillion and a population of 282 million, making it a massive consumer base for Canadian exports. —Tariff Cuts The deal would slash Mercosur tariffs by up to 35%, opening highly protected sectors like automobiles, machinery, and pharmaceuticals. —Diversification For Canada, the pact directly reduces reliance on the US market by securing preferential access to 98% of its South American trade. —Global Queue The talks place Canada in a line of major economies seeking deeper ties with Mercosur, alongside the EU, EFTA, Japan, and the UAE. Canada joining the queue o