Canada’s beef industry is urging Ottawa to “stand up” for producers as it negotiates a potential trade deal with Mercosur, warning the agreement with the South American bloc could undermine the sector if key concerns aren’t addressed.  

The deal with Mercosur — part of Canada’s trade diversification strategy — would link the country to a roughly $22-trillion market of more than 700 million consumers. It’s aimed at reducing Canada’s reliance on the U.S. amid growing trade volatility. 

However, the beef industry is saying that ambition shouldn’t come at the expense of domestic producers. 

Tyler Fulton, president of the Canadian Cattle Association, said the industry isn’t opposed to competition, noting Canada already imports beef from countries like Australia, New Zealand, the U.S. with comparable standards. 

Instead, Fulton said the Mercosur agreement would allow an influx of lower-cost imports that could discourage young producers from entering the sector, limiting herd growth and ultimately reducing domestic supply and economic activity in rural communities. 

“Our industry has gone through significant challenges over the last few years, including drought, higher costs and market disruptions,” Fulton said at a press conference on Wednesday. 

“These challenges have resulted in a contraction of the national herd, but I’m encouraged that the Canadian beef sector is starting to see positive signs of growth,” he said. 

He said that cost differences are tied to varying standards in areas such as animal health, labour, food safety and environmental practices. 

Industry groups also warned the trade deal with Mercosur could complicate Canada’s already-volatile relationship with the U.S., especially with the upcoming CUSMA deadline. 

“Our most important trading relationship is with the USA, where 70 per cent of Canadian beef exports are directed,” Fulton said. “We can diversify, however, we should not diminish the importance of the USA.” 

When asked if industry groups have been in conversation with the Feds about their concerns, Fulton said the industry has been engaging at the ministerial level, but are not getting enough transparency on what’s being discussed. 

The concerns echo similar frustrations raised during debates over the the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), particularly following the U.K.’s accession. 

Industry groups say longstanding non-tariff barriers, including hormone-free requirements and differing food safety standards, continue to limit Canadian exports, leaving the market largely inaccessible despite tariff reductions. 

In a separate interview with iPolitics last Wednesday, Fulton said the agreement doesn’t represent a reciprocal market. 

He argued that U.K.’s regulatory standards dismiss Canada’s established inspection and safety regime. 

“Quite simply, we need our trading partners to trust that this system [and] they can be confident in it,” he said. 

A spokesperson for International Trade Minister Maninder Sidhu said they’re committed to working with the industry to address barriers to the UK market, but noted that Canadian beef exports to CPTPP markets saw a 149.5% increase in beef exports between 2018 and 2025, from $338 million to $842 million. 

“The U.K.’s accession will integrate another major G7 economy into the CPTPP framework and regional supply chains, providing greater certainty and further opportunities for Canadian exporters, including our farmers, to diversity trade and investment,” they said.