Canada and the South American trading bloc Mercosur are set to sign a free trade agreement by the end of 2026, South American officials have claimed.With negotiations between the South American bloc and the Canadian government set to take place next month, reports have emerged that Mercosur-nation officials are optimistic about a free trade deal being struck sooner rather than later.Mercosur is a trading bloc comprising the South American nations of Brazil, Argentina, Paraguay, Bolivia, and Uruguay, similar to the EU but much less integrated.According to Reuters, a Brazilian official has said that negotiations between the two parties have been progressing at a record pace and relations between them are extremely good. The same official confirmed that the two parties will probably reach a deal this year.Another official from Argentina echoed this sentiment, saying that an agreement is expected to be signed by September or October..Prime Minister Mark Carney is expected to travel to Brazil soon to further talks with the trading bloc.A spokesperson from the Canadian trade ministry told Reuters that "negotiations on a free trade agreement are moving forward with momentum, and we are encouraged by the progress being made. Canada is committed to concluding an ambitious, comprehensive agreement that creates real opportunities for Canadian businesses, workers, and investors."Talks have ramped up recently due to the Canadian government's intent to diversify its trading partners away from the United States.An agreement would provide further access for Canadian mining companies in the southern continent and would help increase access for South American beef, minerals, and soy into the Canadian market.If this trade agreement comes to fruition, it would mark the first free trade agreement Mark Carney has signed since taking office in 2025.
