Mercosur, Canada Near Free-Trade Agreement with April Talks

Canada and South America’s Mercosur bloc are advancing toward a free-trade agreement that could be signed by the end of the year, with more negotiations scheduled for next month in Brasília, according to three sources familiar with the talks, Lucinda Elliott and Lisandra Paraguassu reported for Reuters on Mar. 27, 2026.

South America, especially Brazil, is a trade partner Canada cannot do without. (Photo: TPR MERCOSUR) 

Government officials from Canada, Argentina, and Brazil told Reuters they expect the deal to be concluded in 2026, with one noting that talks are progressing well and could be wrapped up before September.

An Argentine government official said the agreement is expected to be signed in September or October, marking roughly a year since negotiations formally restarted.

Another diplomat based in Brazil also told Reuters negotiations are moving at a record speed and progressing extremely well, confirming the countries will probably reach a deal this year.

Canada has intensified efforts to diversify trade amid uncertainty linked to tariffs imposed by US President Donald Trump, and South America, especially Brazil, is a trade partner Canada cannot do without, the diplomat said.

For Mercosur, a major exporter of beef, soy, and minerals, an agreement with Canada would expand access to developed markets and help attract investment in key industries such as mining.