Canada’s Strategic Move to Enhance Trade with Brazil Amid U.S. Tariffs
Canada aims to strengthen trade relations with Brazil through the Mercosur-Canada Free Trade Agreement, with particular focus on sectors such as oil and gas, renewable energy, and technology sharing. The context of U.S. tariffs has emphasized the importance of diversifying trade partnerships. Recent trade statistics indicate a growth in Brazilian exports to Canada, while imports faced a decline. The Canadian government is proactively establishing a business presence in Brazil for future opportunities.
Canada is actively pursuing the enhancement of trade relations with Brazil through the Mercosur-Canada Free Trade Agreement. Evelyne Coulombe, Canada’s ambassador to Germany, highlighted the recent long-term agreements with Chile and Ecuador, expressing optimism about finalizing the deal with Mercosur. While negotiations began in March 2018, the agreement has yet to be completed, presenting a significant opportunity amidst current challenges, particularly related to the United States’ tariffs.
On April 4, 2024, President Donald Trump announced a 25% tariff on imports from Canada and Mexico, along with a 20% tariff on goods from China. This initiated retaliatory measures, with Canada imposing tariffs on $107 billion worth of U.S. products over a three-week period. Ms. Coulombe remarked that this trade war was unexpected given the long-standing alliance and the free trade agreement between the two nations.
Despite these pressures, Ms. Coulombe sees an opening to strengthen business connections with Brazil and other markets, suggesting that dependence on a single trade partner is unwise. Her remarks coincided with the announcement of over 200 Canadian companies’ participation in Hannover Messe 2025, emphasizing the need to diversify economic markets.
In light of recent trade statistics, Brazilian exports to Canada saw a 9.44% increase in 2024, driven predominantly by gold and other commodities, while imports from Canada experienced a 17.5% decrease. The ambassador notes that increasing collaboration in sectors like oil and gas and renewable energy, as well as technology exchange in IT and scientific research, could be mutually beneficial.
Canada has also shown interest in Brazil’s sugarcane industry and has established a business development office in São Paulo to explore new opportunities in agrotechnology. This initiative aims to foster commercial relations and capitalize on synergies between the two nations.
In conclusion, Canada is strategically seeking to solidify its trade relations with Brazil through ongoing negotiations for the Mercosur-Canada Free Trade Agreement. The current tariff situation with the U.S. has prompted Canada to explore new opportunities in various sectors, including renewable energy and technology sharing, while also expressing a commitment to diversify its trade partnerships beyond a singular focus. The establishment of a new business office in Brazil further signifies Canada’s intent to enhance its commercial foothold in Latin America.
Original Source: valorinternational.globo.com
