Canada and the South American trade bloc Mercosur are officially heading back to the negotiating table to discuss a long-awaited free-trade agreement. The announcement came Monday in Brasília, following high-level meetings between Canadian and Brazilian officials.

Mercosur, currently presided over by Brazil, includes Argentina, Uruguay, and Paraguay, with Bolivia in the process of becoming a full member. The bloc is a global powerhouse for exports such as beef, soybeans, and minerals — sectors that could open new opportunities for Canadian businesses if a deal is reached.

In a joint statement, both sides confirmed that senior trade officials and chief negotiators will meet in early October to formally resume talks. Canada’s renewed push comes as part of its broader strategy to diversify trade beyond its traditional reliance on the United States, especially amid uncertainty created by U.S. tariffs under President Donald Trump.

Canadian Trade Minister Maninder Sidhu emphasized the importance of strengthening ties with “like-minded partners” to preserve rules-based trade and promote economic growth. Brazil’s Foreign Minister Mauro Vieira echoed the sentiment, noting that both countries have been impacted by trade-distorting measures and calling the October talks “important” for progress.

Negotiations between Canada and Mercosur had been on hold since 2021, as South American countries grappled with domestic elections and shifting global trade priorities. The restart signals fresh momentum toward a potential agreement that could reshape trade flows between Canada and South America.