Canadian beef producers are alarmed by the government’s pursuit of a free trade agreement with Mercosur, the South American trading bloc comprising Argentina, Brazil, Paraguay, and Uruguay. The president of the Canadian Cattlemen’s Association (CCA), Tyler Fulton, described the potential deal as offering “quite dubious benefits” for Canada, arguing that market access would be far from reciprocal.
The CCA, which represents 60,000 cattle farmers, reports that imports from Mercosur countries surged 238% between 2021 and 2025, with annual quotas exhausted within days this year. Producers fear a flood of cheaper South American beef — particularly from Brazil, the world’s largest beef exporter — could undermine domestic farmers who are already rebuilding herds following a prolonged drought.
Prime Minister Mark Carney’s government is pushing ahead with the talks as part of a broader effort to reduce Canada’s heavy reliance on US trade, with a deal reportedly targeted for completion before the end of 2026. Critics also warn that Mercosur beef could serve as a back door into the US market, potentially breaching the existing USMCA trade agreement.
Canada’s beef sector supports 350,000 jobs and contributes around US$34 billion to GDP annually, underlining the significant economic stakes involved.
