Canada needs to focus on expanding trade and investment agreements with countries around the world. The key will be for the government of Canada negotiate fair trade deals.

1. Canada and Mercosur Trade
and Investment
PAUL YOUNG CPA, CGA
SEPTEMBER 5, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Summary
 Canada depends on export as such need both FIPA and FTA.
 FTA has to be fair. Canada is running $22B annual trade deficit.
 Liberals have failed to get goods to market, especially Agriculture, Oil, Natural
Gas, Forestry and Metals.
 Harper pushed trade deals, but fair trade deals. Liberals will never discuss any
work the previous government did on trade. Liberals will take full credit despite
not doing all the work!

4. Agenda
 What is Mercosur?
 GDP Growth Rates
 Trade with Peru and Brazil
 Trade with Mercosur Countries (member and non-member)
 South America and Canada
 Canada and Mercosur

5. What is the Mercosur
Source - https://www.cfr.org/backgrounder/mercosur-south-americas-fractious-trade-bloc
Mercosur is an economic and political bloc comprising Argentina, Brazil, Paraguay, Uruguay, and
Venezuela. Created during a period when long-time rivals Argentina and Brazil were seeking to
improve relations, the bloc saw some early successes, including a tenfold increase in trade
within the group in the 1990s. However, many experts say Mercosur has since failed to live up to
its ambitions of integrating the region.
In recent years, other experts have questioned the bloc’s commitment to democracy. Mercosur’s
one-year suspension of Paraguay in 2012 and indefinite suspension of Venezuela in 2016 for
violating its rules on democracy have revealed fractures within the group.

6. South America
Source - http://statisticstimes.com/economy/countries-by-projected-gdp.php

7. Trade with Brazil and Peru

8. Trade with Mercosur Countries
Source – Stats Canada

9. FDI and South America
 Chile/China - https://www.bnamericas.com/en/news/chile-wooing-china-with-us18bn-in-public-
sector-projects or https://www.japantimes.co.jp/news/2019/09/24/business/chile-china-japan-
lithium-investment/
 Bolivia / China - https://www.mining-technology.com/features/bolivia-will-the-ousting-of-morales-
open-lithium-to-foreign-investment/ (Lithium rich)
 Brazil / Natural Resources - https://www.bizlatinhub.com/foreign-direct-investment-trends-brazil-
2019/ and privatization - https://www.forumchinaplp.org.mo/privatisation-helps-brazil-attract-us75-
bln-of-fdi-in-2019/
 Argentina - https://santandertrade.com/en/portal/establish-overseas/argentina/foreign-investment

10. Trade and Investment
Source – Government of Canada
Agreements Brazil Peru Argentina Colombia Chile Uruguay Paraguay Bolivia Ecuador
Trade None 2009 None 2011 1997 None None None None
FIPA None 2007 1993 2011 1997 1999 None None 1997
• Brazil and Canada (FIPA) – Brazil is know for their corruption -
http://www.canadianlawyermag.com/article/brazils-corruption-crackdown-3198/ Canada
does not have a FIPA deal with Brazil
• Paraguay and Canada (No FIPA)
• Bolivia and Canada (No FIPA)

11. Argentina
Source - http://ww2.cfo.com/global-business/2018/09/argentina-takes-steps-to-ease-currency-
crisis/?utm_campaign=CFODailyAlert&utm_nooverride=1&utm_source=CFO-
email&utm_medium=email&utm_content=CFODailyAlert_Tuesday_2018-9-4&utm_term=global-business
Argentina has announced new austerity measures to close its budget gap amid a currency crisis that
has seen the value of the peso decline by almost 50% against the dollar this year.
The announcement of new taxes on exports and steep cuts to spending came as Finance Minister
Nicolas Dujovne prepared to meet with the International Monetary Fund on Tuesday as part of an effort
to speed up the release of cash from a $50 billion bailout plan.

12. Canada and Mercosur
Harper
 Prime Minister Stephen Harper is in Brazil's financial centre of
Sao Paulo today to give a luncheon speech to business and
political leaders.
 He said Monday that Canada is in the early stages of free-trade
talks with a South American economic bloc called Mercosur,
that includes Brazil, Argentina, Paraguay and Uruguay.
 The Conservative government has sought to expand trade
opportunities with countries across Latin America and the
Caribbean.
 Already, Brazil is Canada's 10th largest trading partner and
some 400 companies operate there.
Source - http://www.huffingtonpost.ca/2011/08/09/stephen-harper-in-
brazil_n_921859.html -
Trudeau
 Increased trade and investment opens new markets for
Canadian goods and services, creating long-term growth and
an economy that works for the middle class. Diversifying trade
with important and fast-growing markets, such as those found
in the dynamic Asia-Pacific and Latin American regions, is a
priority for job creation for hard-working Canadians.
 Today, the Honourable François-Philippe Champagne, Minister
of International Trade, announced that he will travel to
Santiago, Chile, from March 7 to 8, 2018, to sign the
Comprehensive and Progressive Agreement for Trans-Pacific
Partnership (CPTPP). The Minister will then continue on to
Asunción, Paraguay, on March 9.
Source - https://www.canada.ca/en/global-
affairs/news/2018/03/minister-champagne-to-travel-to-chile-and-
paraguay-to-help-create-jobs-for-canadas-middle-class-by-
expanding-access-to-international-markets.html
• CPC started talks with Mercosur back in 2011. LPC are just picking up the file now as way to
deflect the bad trip to India.

13. Blog – Mercosur
 Trade talks with Mercosur are not new to Canada. Harper started talks back 2011. Liberals are great at trying look like they are
doing things on trade when in fact little will get done under their watch.

 Canada is not in official talks with Mercosur countries - https://www.neweurope.eu/article/mercosurs-search-for-free-trade-
around-the-world-could-have-democratic-implications/

 There have been issues with Mercosur - https://www.cfr.org/backgrounder/mercosur-south-americas-fractious-trade-bloc

 Source - https://www.slideshare.net/paulyoungcga/canada-and-mercosur-trade-and-investment

 Source - https://www.canada.ca/en/global-affairs/news/2018/03/minister-champagne-to-travel-to-chile-and-paraguay-to-
help-create-jobs-for-canadas-middle-class-by-expanding-access-to-international-markets.html

14. Trade / Mercosur
 Canada should be focus on trade deals with individual countries and not blocs of
countries
 Mercosur trading block has failed to deliver the goods. Expanding trade via
Mercosur path is not likely best path forward for Canada
 Liberals need wins on trade as they have blow foreign relations with more
advancing economies like Indonesia, Malaysia and India.