Canada and Mercosur Target Trade Agreement by Late 2026

Canada and the South American trade bloc Mercosur are making significant strides toward a comprehensive free-trade agreement, with officials indicating a potential signing by the end of 2026. A new round of negotiations is set to take place next month in Brasilia, as representatives from Argentina, Brazil, and the Canadian government work to finalize terms that have been under discussion since talks formally restarted last year.

Diplomatic sources suggest that the agreement could be concluded as early as September or October. The momentum is reportedly moving at a record pace, driven by a mutual desire to strengthen economic ties. While a formal announcement is not expected during Canadian Prime Minister Mark Carney’s upcoming visit to South America, his presence is viewed as a critical catalyst for the final stages of the deal.