Canada eyes Mercosur trade talks amid US uncertainty Push to diversify trade and defence beyond American ties21 July 2025 21 July 2025 3 minute read 3 minute read By: By: Global Ag Media North AmericaCanada's International Trade Minister said on Thursday that there was interest from both sides to advance trade talks with South American bloc Mercosur, as Ottawa seeks new deals in a push to diversify from the US, reported Reuters. "I had conversations with the foreign minister of Brazil, and there is appetite to carry out conversations around Mercosur," Minister Maninder Sidhu said in an interview with Reuters. Brazilian President Luiz Inacio Lula da Silva had said in April that he was interested in advancing talks for a trade deal between South America's Mercosur bloc and Canada. Mercosur - which includes Brazil, Argentina, Paraguay and Uruguay - has had negotiation rounds for a trade deal with Canada in the past. Canadian exports to the U.S. dropped in May to 68% of total exports from a monthly average of 75% last year.