Government officials from Canada and Mercosur countries (Brazil, Argentina, Bolivia, Paraguay and Uruguay) met in Toronto last week for a new round of negotiations aimed at advancing a potential trade agreement between the two blocs. The discussions prompted renewed opposition from Canada's beef industry, which is lobbying against any expansion of Mercosur beef access to the Canadian market.
According to the Canadian Cattle Association (CCA), Canada already imports more beef, on a proportional basis, than almost any major beef-producing country. The organization is urging the federal government not to use beef as a bargaining chip in negotiations, arguing that greater Mercosur access would pressure domestic producers and discourage herd rebuilding efforts.
The association noted that Canadian beef imports reached their highest level since 1993 in 2025, accounting for about 30% of domestic consumption. Imports from Mercosur countries have increased 238% since 2021, rising from 12,000 tons to more than 40,000 tons last year.
Canadian media reports indicate that negotiators are seeking to conclude a Canada-Mercosur agreement by the end of the year. If finalized, the deal would provide Canadian exporters with tariff-free access to a US$ 3 trillion market of 282 million people, while opening Canada’s US$ 2.2 trillion economy further to Mercosur exports.
Currently, Argentina and Brazil can export limited volumes of beef to Canada duty-free, while shipments above those quotas face a 26.4% tariff. Canadian cattle producers argue that removing this tariff would place local operators at a disadvantage against competitors with lower production costs.
Industry concerns are focused less on premium steak cuts and more on lean manufacturing beef. Canadian production is largely grain-fed, while South American exporters specialize in lean trimmings used for ground beef and hamburgers. According to University of Guelph professor Mike von Massow, increased imports of this product could negatively affect Canadian processors.
Source: paNow / The Globe and Mail.
