Producers are concerned with domestic implications
The Canadian Cattle Association (CCA) is against the federal government entering into a trade deal with South American countries that could jeopardize Canada’s domestic livestock industry.
The Canadian government is currently engaged in trade talks with Mercosur, a bloc of five South American countries including Brazil and Argentina.
Negotiations started in 2018, stalled in 2020, and ramped up again in the fall of 2025 as the two sides hope to come to a finalized agreement before the end of 2026.
A point of contention for Canada’s livestock sector is the potential increase in beef imports.
Between January and April 2025, Canadian beef imports experienced a 22 per cent increase in volume and a 29 per cent increase in value, a Q2 domestic market report from Canada Beef says.
During that time, imports from Argentina increased by 364 per cent.
Overall, between 2021 and 2025, beef imports from Mercosur countries increased by 238 per cent. And by mid-January, the annual beef import quota for 2025 had been filled by Mercosur countries, the CCA says.
Further Mercosur access to the Canadian beef market would undermine the high-quality beef producers raise.
“We are proud of our high standards for animal health, labour and food safety while providing vital environmental benefits like ecosystem protection, carbon sequestration and wildlife habitat, which results in the sustainably produced, premium beef that Canada is known for around the world,” CCA Chair Tyler Fulton said in an April 10 statement. “In contrast, Mercosur beef does not meet the same standards for animal health, labour or food safety and has long been associated with environmental degradation. Displacing locally and sustainably produced Canadian beef is a loss for consumers, the environment and rural communities.”
The CCA is encouraging livestock producers to contact their MPs through an online letter campaign.
The CCA isn’t alone in its opposition to a Mercosur trade agreement.
Multiple organizations from different industries have concerns too.
In December 2018, for example, the Canadian Steel Producers expressed that this agreement “could erode its members’ share of the domestic market, including in relation to automotive manufacturing and the production of energy, pipe and tubular goods,” a House of Commons committee meeting says.
And in June 2019, the Trade Justice Network, a coalition of labour groups, wrote to the federal government laying out multiple reasons it should stop negotiations with Mercosur and then Brazilian President Jair Bolsonaro.