Canada Accelerates Mercosur, Asia Trade Push to Cut U.S. Dependence

Canada’s International Trade Minister Maninder Sidhu said Ottawa is accelerating negotiations on multiple fronts as it seeks to reduce the economy’s heavy reliance on the United States. Sidhu told reporters on 17 July that both Canada and the Mercosur bloc are eager to resume formal trade talks, adding that he recently discussed the matter with Brazil’s foreign minister and sees “appetite to carry out conversations.” The minister also directed officials to open discussions with Chinese counterparts “as soon as possible” to resolve outstanding issues on tariffs affecting canola, beef, pet food and other exports. In parallel, Sidhu said restoring India’s high commissioner in Ottawa will be a key step toward reviving dialogue with New Delhi, while separate negotiations with the 10-nation ASEAN grouping are gathering momentum. Sidhu framed the push as part of a broader strategy to diversify trade and defence supply chains away from the U.S., which still accounted for about C$1 trillion in bilateral commerce last year. Canada currently has 15 free-trade agreements covering 51 countries, and the minister said Ottawa intends to sign additional pacts in the coming months.