A representative from Brazil told the publication Lusa that the free trade agreement between Mercosur and Canada could transform economic ties between Brazil and Canada, opening up new investment opportunities.
Igor Brandan, Director of Operations for ApexBrasil's North America agency, emphasized that this agreement could alter the level of relations between Brazil and Canada, as well as all other members of the Mercosur bloc, but especially for Brazil.
In statements made to Lusa during the 19th Doing Business in Brazil conference in Toronto on Tuesday, he noted that trade negotiations could strengthen cooperation in sectors such as agriculture, pharmaceuticals, aviation, and processed goods.
He explained that the main obstacle is the negotiation timeline. Despite 10 rounds of discussions, there are still chapters that need to be discussed and finalized. According to Igor Brandan, the agreement will primarily benefit high value-added sectors, allowing Brazilian exports to diversify beyond raw materials.
"We understand that in the drug chain, for example, in the production of processed foods, these will be the sectors that benefit, and this can create a new profile of trade between Brazil and Canada," he added. The representative also highlighted the complementarity of the two economies, citing Canadian fertilizer production and the scale of the Brazilian agricultural sector as examples of cooperation opportunities.
Furthermore, economic convergence could benefit the aerospace industry and critical minerals. He recalled that Brazil possesses the second-largest reserve of rare earth elements, which has enormous potential in the context of the energy transition agenda and the green economy. Igor Brandan also pointed to Canadian expertise in mining, believing that technological cooperation and knowledge exchange can foster long-term strategic partnerships.
According to data from the Brazil-Canada Chamber of Commerce, bilateral trade reached approximately 10.4 billion North American dollars (9.3 billion euros) in 2025. Of this amount, $7.25 billion (6.5 billion euros) was attributed to Brazilian exports, and $3.14 billion (2.8 billion euros) to imports from Canada. According to Igor Brandan's estimates, accumulated Canadian investments in the Brazilian economy amounted to about 33 billion euros by the end of 2025.
Despite these figures, the representative believes there is significant potential to increase trade volume, given the size of both economies. Igor Brandan insisted on the necessity of developing long-term economic relations between Brazil and Canada, regardless of political changes in Washington, Ottawa, or Brasília. He justified this by stating that both countries possess complementary economic interests and characteristics.
ApexBrasil plans to conduct three more trade missions in Toronto and Montreal before the end of the year, which will include companies from the mining, food, audiovisual, and creative economy sectors. He confirmed that no new agreements were announced at the conference, but contacts strengthened Canadian investors' confidence in the Brazilian market.
Peter Hawkins, co-chairman of the Brazil-Canada Chamber of Commerce, called the protection of competing economic sectors one of the main obstacles in trade negotiations between Canada and Mercosur. "We both produce meat and steel, and there is a concern that one market might harm the other," he told Lusa, referencing concerns from meat producers in Alberta province, Canada, regarding the import of Brazilian products.
Nevertheless, Hawkins argued that differences in products and technologies used could promote the complementarity of the two economies rather than increasing competition. In Peter Hawkins' opinion, more than half of the discussed items have been resolved, although important issues remain to be concluded. He noted: "If there is an opportunity to conclude a free trade agreement, we can exponentially increase trade volume," acknowledging the potential to generate an additional 6.2 billion euros in business. The businessman also highlighted the connections established between technology companies and representatives of the agricultural sector during the conference, as well as the preparation of new business missions in the coming months. Planned events include a mission of Canadian entrepreneurs and executives to Florianópolis and São Paulo, as well as contacts in the apparel, animation, and food sectors.
