Should Canada Pursue Free Trade Deals with Mercosur and Thailand?

Official title: Consulting Canadians on the resumption of free trade agreement negotiations with Mercosur (Brazil, Argentina, Paraguay, and Uruguay) and negotiations for an accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with Uruguay

Open Policy & Studies Economy & Jobs
Canada wants to restart free trade talks with South America's Mercosur bloc (Brazil, Argentina, Paraguay, Uruguay) and begin new negotiations with Thailand. The government is asking Canadians what they think about these potential deals. They're especially interested in hearing from groups often left out of trade discussions—small businesses, Indigenous peoples, women entrepreneurs, and youth.

Why This Matters

Trade deals affect what you pay at the store and whether your job stays in Canada. Mercosur is the world's 5th largest economy—we already trade $15.8 billion with them annually. Thailand is our second-biggest trading partner in Southeast Asia. These deals could open new markets for Canadian businesses or bring cheaper imports. But they could also mean more competition for Canadian workers.

What Could Change

If negotiations succeed, tariffs on goods between Canada and these countries could drop or disappear. Canadian exporters might get better access to 282 million consumers in Mercosur and 70 million in Thailand. New rules could cover digital trade, labour standards, and environmental protections. Uruguay might also join the CPTPP trade agreement.

Key Issues

  • What Canadian interests should be prioritized in free trade negotiations with Mercosur?
  • What opportunities and concerns exist for a free trade agreement with Thailand?
  • How can trade agreements better include under-represented groups like small businesses, Indigenous peoples, and women entrepreneurs?

How to Participate

  1. Review the consultation background on Canada's trade relationships with Mercosur ($15.8 billion in bilateral trade) and Thailand ($6.37 billion in bilateral trade).
  2. Submit your views on what Canada's priorities should be in these trade negotiations. The government particularly welcomes input from small businesses, Indigenous peoples, women, youth, and other under-represented groups.

Key Documents