Canada`s trade and investment relations with Brazil have grown steadily in recent years. Significant domestic investment in both routes continues to increase, as does bilateral trade in goods and services. Canada and Brazil have relations dating back to 1866, when Canada opened its first trade mission to the country. Diplomatic relations were established in 1941, when Brazil opened its embassy in Ottawa and Canada and opened an embassy in 1944. The two nations also fought side by side during The Second World War during the Italian campaign. Today, Canada has an embassy in Brasilia, a consul general in Sao Paulo and Rio de Janeiro, trade offices in Belo Horizonte, Recife and Porto Alegre, and an honorary consul in Belo Horizonte. Brazil has an embassy in Ottawa and consulates general in Montreal, Toronto and Vancouver. Canada is currently negotiating a free trade agreement with Mercosur, a trade bloc and a customs union between Argentina, Brazil, Paraguay and Uruguay. Mercosur as a bloc represents a GDP of more than $3 trillion and a population of 261 million in 2019. It is not clear that this is a great high-value agreement with Mercosur.
World Affairs Canada`s economic forecasts indicate that this proposed agreement could increase Canada`s real gross domestic product by approximately $1.3 billion. This corresponds to an economic growth of about 0.051 per cent – not a large profit compared to the importance of other markets. On February 23, 2018, Canada announced the positive conclusion of exploratory discussions on a comprehensive free trade agreement with MERCOSUR. On March 9, 2018, Canada and MERCOSUR agreed to begin negotiations for a comprehensive free trade agreement between Canada and MERCOSUR. Other trade and investment agreements with Canada and Brazil are: but can we reach a truly “progressive” trade agreement with a Brazilian president called Donald Trump of South America? Brazil is Canada`s third largest trading partner in North and South America, after the United States and Mexico. Trade in goods between Canada and Brazil was $7.7 billion in 2019. Canada`s top exports of goods to Brazil include fertilizers (45.4%), machinery and parts (11.8%), mineral fuels and oils (7.1%) as well as aircraft and parts (5.9%). Canada`s main imports of products from Brazil are inorganic chemicals (27.1%), precious stones and metals (23.5%), machinery (7.7%) Steel (4.7%). Two-way services trade was $1.4 billion in 2019. In 2017, Canada and Mercosur traded $8.9 billion in trade. From January to April 2018, Brazil exported $932 million to Canada, up 7.27 per cent from the same period in 2017.
Over the same period, Canadian exports to Brazil totaled $563 million, up 14.98% from the previous year. These figures are expected to increase with the expansion of market access promised by the free trade agreement. In 2020, Brazil and Canada will celebrate the 10th anniversary of the Science, Technology and Innovation Agreement (ITS). The agreement provides for the creation of a joint committee to promote bilateral cooperation between Canadian and Brazilian industrial, scientific and government partners. Brazil`s Minister of Industry, Foreign Trade and Services, Marcos Jorge de Lima, believes that the start of these negotiations is very strategic and underlines Brazil`s determination to open up and participate in international trade. Negotiations on the free trade agreement will take place following the announcement by the United States of measures that could affect Brazilian exports of steel and aluminum products in this market.