Potential benefits of a Canada-Mercosur free trade agreement for Canadian sectors

Forestry sector

What could a free trade agreement with Mercosur mean for Canada’s forestry sector?

Canada’s forestry sector is a major source of wealth for Canadians, and the Government of Canada is actively exploring new opportunities to develop markets for Canadian wood and wood products.

A comprehensive and ambitious FTA with Mercosur could enhance market access for Canadian world-class goods, creating more opportunities for established and first-time exporters to tap a rapidly growing market while creating new jobs at home.

Automotive sector

What could a free trade agreement with Mercosur mean for Canada’s automotive sector?

The automotive sector is one of Canada’s largest manufacturing sectors. Its skilled workforce combined with deep expertise position Canada to play a leadership role as the industry evolves.

A comprehensive and ambitious FTA with Mercosur could enhance market access for Canadian world-class goods, creating more opportunities for established and first-time exporters to tap a rapidly growing market while generating new jobs at home.

Fish and seafood sector

What could a free trade agreement with Mercosur mean for Canada’s fish and seafood sector?

The fish and seafood industry is a vital part of Canada’s economy and communities, and helps to create jobs in coastal cities and towns.

A comprehensive and ambitious FTA with Mercosur could enhance market access for Canadian world-class goods, creating more opportunities for established and first-time exporters to tap a rapidly growing market while generating new jobs at home.

Industrial goods sector

What could an FTA with Mercosur mean for Canada’s industrial goods?

A comprehensive and ambitious FTA with Mercosur could enhance market access for Canadian world-class goods, creating more opportunities for established and first-time exporters to tap a rapidly growing market while generating new jobs at home.

Tariff elimination on industrial goods could be wide-ranging, covering a variety of key Canadian export sectors, including:

Chemical and plastic products
  • In 2016, the chemicals sector contributed close to 88,000 jobs across Canada, while the plastics sector contributed more than 90,000. Overall, employment in these sectors is concentrated in Ontario, Alberta and Quebec.
  • In 2017, Canada exported $94.2-million worth of chemical and plastic products to Mercosur countries.
  • A comprehensive and ambitious FTA with Mercosur could reduce tariffs on Canada’s chemicals and plastics exports by up to 35%.
Medical goods and pharmaceuticals (life sciences)
  • In 2016, the life sciences sector supported 90,000 jobs across Canada, with the majority of employment concentrated in Ontario, Quebec and British Columbia.
  • In 2017, Canada exported $175.3-million worth of pharmaceutical products to Mercosur countries.
  • A comprehensive and ambitious FTA with Mercosur could reduce tariffs on Canada’s medical goods and pharmaceuticals exports by up to 14%.
Aluminum
  • In 2016, the Canadian aluminum sector employed approximately 10,000 workers while contributing $4.7 billion to Canada’s GDP—representing about 2.7% of Canada’s manufacturing GDP.
  • In 2017, Canada exported $2.6-million worth of aluminum products to Mercosur countries.
  • A comprehensive and ambitious FTA with Mercosur could reduce tariffs on Canada’s aluminum exports by up to 20%.
Industrial machinery
  • In 2016, the industrial machinery sector contributed over 116,000 jobs across Canada, with 45% in Ontario, 25% in Quebec and 27% in Western Canada.
  • In 2017, Canada exported $232.7-million worth of machinery and equipment products to Mercosur countries.
  • A comprehensive and ambitious FTA with Mercosur could reduce tariffs on Canada’s industrial machinery exports by up to 35%.
Information and communications technology
  • In 2016, the information and communications technology (ICT) sector employed 35,000 workers in Canada’s major urban centres, particularly Toronto, Montréal, Vancouver, Ottawa, Waterloo, Calgary, Edmonton and the city of Québec.
  • The sector contributed $73.1 billion to, or 4.3% of, Canada’s GDP in 2016.
  • In 2017, Canada exported $73.2-million worth of ICT products to Mercosur countries.
  • A comprehensive and ambitious FTA with Mercosur could reduce tariffs on Canada’s ICT exports by up to 35%.
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