Canada’s agriculture sector divided on Mercosur free trade deal

OTTAWA — Industries in Canada’s agriculture sector are divided on whether a free trade deal with the Mercosur group will benefit the country as Canada and the South American trading bloc look to strike a deal by year’s end.

Representatives from the Canadian Cattle Youth Council gathered on Parliament Hill last month to warn that a free trade deal with Mercosur could jeopardize beef production in Canada and pose risks to food safety.

But Michael Bourque, president and CEO of Fertilizer Canada, said in a letter to Prime Minister Mark Carney earlier this year that a trade agreement with Mercosur is a chance for Canada to strengthen its position as a global supplier of crop nutrients.

He said potash is Canada’s largest export to Brazil and Canada must ensure its potash sector remains competitive.

Keith Currie, president of the Canadian Federation of Agriculture, says any Canada-Mercosur agreement must account for significant differences in production scale, cost structures, regulatory frameworks and market conditions.

Currie says that while opportunities may exist in some sectors, the benefits for Canadian agriculture are likely to be uneven and it’s important that any deal protects Canadian farmers.

This report by The Canadian Press was first published Nov. 12, 2026.

Catherine Morrison, The Canadian Press