International Trade

This House of Commons International Trade committee meeting studied Canada’s trade diversification, focusing on relations with Mercosur countries and Africa. Appearing were Aaron Fowler (Global Affairs Canada), Evan Lewis (Canadian Food Inspection Agency), Axel Ndayisaba (Agriculture and Agri-Food Canada), Mohamad Sawwaf (Canada-Arab Business Council), and Anthony Salloum (ONE Campaign).

Aaron Fowler, the chief negotiator for the Canada-Mercosur FTA, reported that negotiations resumed in fall 2025 after a six-year pause, with an eighth round held in Brasília in February 2026 and a ninth round planned for April. He described the recent round as a "level-setting" exercise to review prior texts in light of new trade developments, and noted that public consultations showed stakeholder interest in sectors like agriculture, machinery, and services. He estimated the agreement could increase Canadian exports to Mercosur by 37% ($2.4 billion), while imports would rise by only 3-5%, and confirmed that Bill C-202 prevents negotiators from making concessions on supply-managed products.

Evan Lewis explained that the CFIA ensures all imports meet Canada’s strict sanitary and phytosanitary standards, and that no free trade agreement compromises the government’s right to take necessary protective measures. He stated that existing access for Mercosur products is based on thorough scientific assessments, and that expanded access would require additional audits, though he could not provide details on current audit frequency or border rejection rates for those countries. He emphasized that the agency’s resource allocation is risk-based and that it monitors for diseases like foot-and-mouth disease, but deferred on questions about competitiveness.

Axel Ndayisaba said Agriculture and Agri-Food Canada works to promote export opportunities for sectors like grains and legumes while protecting sensitive industries such as supply management. He noted that Canadian producers have raised concerns about competition from Mercosur meat and supply-managed sectors, and that the beef sector is heavily reliant on the U.S. market, but that strong rules of origin under CUSMA prevent leakage. He also highlighted that Canada already exports about $100 million in wheat to Brazil, and that tariff elimination could expand that market.

Mohamad Sawwaf argued that Canada is a latecomer to Africa, where the African Continental Free Trade Area is creating the world’s largest free trade zone, and urged Canada to leverage its diaspora, Francophonie membership, and sector alignment in clean tech and agri-food. He recommended developing a Canada-Africa trade strategy with a North and West Africa chapter, modernizing SME access to export financing through a blended finance facility, and establishing a formal diaspora trade diplomacy program. He disagreed with the notion that Canada should compete directly with China, instead suggesting Canada focus on high-value sectors like engineering and AI.

Anthony Salloum said Canada’s Africa strategy lacks an implementation plan with measurable goals, and that the relationship is too often seen as charity rather than partnership. He recommended publishing such a plan, organizing a prime minister-led trade mission to Africa, and creating a dedicated Canada-Africa investment facility and diaspora engagement mechanism. He noted that Canadian exports to Africa could double to $13 billion by 2035, and that Canada should start with bilateral deals with a few stable countries like Morocco, Tunisia, and Egypt rather than waiting for the full AfCFTA to be ready.

The committee also heard a notice of motion from Jacob Mantle requesting that the minister of finance extend the Ukraine goods remission order from a 2026 expiry to 2031, to give Ukrainian businesses a longer planning horizon. The government indicated it would propose an amendment to a previously noticed motion on CBSA outages, and the committee agreed to discuss it at a later date.