Canada Eyes New Trade Horizons Beyond U.S.

In a strategic move to diversify its trade relationships, Canada is engaging in talks with Mercosur, the South American trade bloc. This comes as Prime Minister Mark Carney continues negotiations with the U.S. to lessen tariffs and secure better trade terms.

International Trade Minister Maninder Sidhu announced interest from both sides for extending discussions with Mercosur, comprising Brazil, Argentina, Paraguay, and Uruguay. The goal is to reduce heavy reliance on the U.S., which accounted for over C$1 trillion in bilateral trade last year.

While Canadian exports to the U.S. have recently declined, conversations with other global partners like China and countries in the Indo-Pacific region are on the rise. Minister Sidhu emphasizes opening new markets and possibly enhancing defense procurement strategies with the European Union and others.

(With inputs from agencies.)