Canada Aims to Strengthen Trade Relations with Brazil Amid U.S. Tariffs

Canada intends to deepen trade relations with Brazil, focusing on the Mercosur-Canada Free Trade Agreement amid U.S. tariffs. Canadian exports and imports with Brazil demonstrate growth potential, particularly in sectors like energy and technology. Ambassador Evelyne Coulombe highlights the importance of diversifying markets to mitigate reliance on a single trading partner.

Canada is actively seeking to enhance its trade relations with Brazil, aiming to finalize the Mercosur-Canada Free Trade Agreement in the near term. Evelyne Coulombe, Canada’s ambassador to Germany, expressed optimism regarding opportunities for a stronger trade relationship, highlighting recently sealed agreements with Chile and Ecuador. She noted that efforts should focus on concluding the free trade agreement with Mercosur to capitalize on emerging possibilities amid the United States’ tariff actions.

Initiated in March 2018, the Mercosur-Canada partnership has undergone numerous negotiation phases but remains unresolved. Ms. Coulombe regarded the current challenges, particularly in light of President Trump’s trade tariffs on Canada and Mexico, as a potential catalyst for new opportunities. She emphasized that crises often lead to unforeseen possibilities that can be leveraged to bolster international trade relations.

The imposition of a 25% tariff on Canadian imports and a 20% tariff on Chinese goods by President Trump on June 4 has elicited retaliatory tariffs from Canada, affecting over $107 billion worth of U.S. products within a structured timeline. Ms. Coulombe remarked on the shock of Trump’s decisions against Canada, underscoring the country’s reliance on free trade as historical allies and the substantial investments made towards border security and addressing pressing transnational issues.

Coulombe believes this situation represents a pivotal moment to fortify business connections with Brazil and expand engagement across Europe and Latin America, acknowledging that excessive reliance on a single trading partner poses risks. In an event promoting the involvement of over 200 Canadian firms at Hannover Messe 2025, she underlined the urgency of diversifying trade markets.

In 2024, Brazilian exports to Canada surged by 9.44%, amounting to $6.31 billion, with key exports including gold, calcined alumina, cane sugar, and aircraft. Contrarily, Canadian imports decreased by 17.5% to $2.7 billion, attributed to currency exchange fluctuations.

Ms. Coulombe conveyed that enhanced trade relations with Brazil have the potential to significantly benefit sectors such as oil, gas, and renewable energy through collaborative technology-sharing initiatives. She also identified the sugarcane industry and agrotechnology as areas ripe for development. In line with fostering these trade relationships, the Brazil-Canada Chamber of Commerce has recently established a business development center in Ribeirão Preto, São Paulo, to unearth new commercial ventures.

In conclusion, Canada is poised to strengthen trade ties with Brazil, emphasizing the importance of diversifying its trade partnerships in response to U.S. tariffs. Ambassador Evelyne Coulombe identifies numerous opportunities across various sectors, particularly in energy and technology. The growth in Brazilian exports to Canada further underscores the potential benefits that could arise from successfully finalizing the Mercosur-Canada Free Trade Agreement.

Original Source: valorinternational.globo.com