Cattle associations have beef with potential Mercosur trade deal

Canada launched negotiations in 2018 seeking a free trade agreement with the South American trading bloc, which includes Argentina, Bolivia, Brazil, Paraguay and Uruguay.

Fulton said Canadian beef is “not a bargaining chip” and that producers need the government to stand up for the sector in the negotiations.

The federal government’s website says Canada’s merchandise trade with Mercosur reached $15.8 billion in 2024, with Canada’s exports valued at $3.1 billion and imports valued at $12.8 billion.

The website says a free trade agreement with Mercosur could reduce tariffs on Canada’s automotives, information and communications technology, industrial machinery, chemicals and plastics, and forestry exports by up to 35 per cent.

Other industries that could see lower tariffs include medical goods, pharmaceuticals and aluminum.

Fulton said a deal with Mercosur risks Canada’s trading relationship with the United States.

“We can diversify, however, we should not diminish the importance of the USA. The North American beef sector is highly integrated in its supply chain,” he said. “U.S. industry has flagged their concerns with Mercosur beef in the U.S. and in Canada, and on the eve of the CUSMA review, we do not need to add irritants. It’s simply not worth the risk.”

Representatives from the National Cattle Feeders Association and the Beef Farmers of Ontario were also at the press conference, as were Conservative MP Adam Chambers and Bloc Québécois MP Simon-Pierre Savard-Tremblay.

Cathy Jo Noble, vice president of the National Cattle Feeders Association, said beef access in the Mercosur trade deal would result in increased imports of low-quality beef raised with lower standards for animal health, labour, food safety and the environment.

“Primarily, cattle feeders have ongoing concerns regarding the foot and mouth disease history, (Bovine spongiform encephalopathy) reporting transparency and the sanitary and phytosanitary compliance in parts of the Mercosur region,” she said. “Protecting animal health is foundational to Canada’s beef industry and must remain an absolute priority in trade policy.”

“A foreign disease outbreak could have catastrophic impacts on the livelihood of cattle feeders, ranchers and the economy of rural Canada.”

Speaking to reporters, Fulton said there is no estimated dollar impact of what the Mercosur agreement could cost the Canadian beef industry.

“We don’t have details exactly on what is on the table,” he said. “It seems hasty, the speed with which they’re moving.”

Fulton said his organization has been engaging at the ministerial level but hasn’t been getting answers to its questions. He said there is an understanding that Mercosur countries hold beef access to Canada as a priority in the agreement.

“It’s very difficult for us to plan and respond and advocate on behalf of our industry when we don’t have transparency as to what is being discussed,” he said.

The Canadian Cattle Association website says its data does not suggest there is any significant export opportunity for Canadian beef in the Mercosur countries, and Fulton said past trade deals have not been good for them.

“Our recent experience has been of bad deals like the U.K. and CETA where there is no reciprocity,” he said. “These markets get to import their beef into Canada while creating barriers for us to export our beef there. Our world may be changing, but what doesn’t change is our need to be strategic about trade and not to diversify for the sake of diversifying.”

This report by The Canadian Press was first published May 6, 2026.

Catherine Morrison, The Canadian Press

by The Canadian Press

Cattle associations have beef with potential Mercosur trade deal

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