Canadian policy must enhance potash competitiveness, the group said
A segment of Canada’s ag industry wants the federal government to finalize a trade agreement with South American countries.
Fertilizer Canada is unwavering in its support for a Mercosur trade deal.
“For Canada’s fertilizer industry, this is not a theoretical opportunity,” Michael Bourque, the organization’s president and CEO, told Prime Minister Carney and some cabinet ministers in a recent letter.
Of the Mercosur countries, Brazil is key for Canada’s fertilizer and potash industries.
In 2025 Brazil imported about $1.6 billion of Canadian potash, or about 30 per cent of all Brazilian potash imports.
That year, total Canadian exports to Mercosur, which also includes Paraguay, Argentina, Uruguay, and Bolivia were valued at $5.1 billion.
Canadian negotiators must secure a trade agreement further empowering domestic potash producers, Bourque said.
“As global competition intensifies, it is essential that Canada's policy and regulatory framework support, rather than disadvantage, domestic producers relative to competitors operating in jurisdictions with less stringent requirements,” he wrote. “There is no greater example than the current opportunity with Mercosur.”
One Canadian ag organization, however, is concerned with the potential trade agreement.
In April the Canadian Cattle Association expressed unease with the potential increase in beef imports.
Between 2021 and 2025, beef imports from Mercosur countries have risen by 238 per cent.
And further access to the Canadian market would undermine the high-quality beef Canadian 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.”
Canada and Mercosur launched negotiations in March 2018 and re-launched discussions in October 2025.
In April 2026 both sides indicated a deal could be finalized by the end of this year.