Argentina Seeks Dairy Export Opportunities in Canada under Mercosur Agreement

The Argentine government is actively pursuing trade negotiations to secure export quotas for cheese and powdered milk to the Canadian market. This is part of efforts to finalize a Free Trade Agreement (FTA) between Mercosur and Canada. During recent negotiations, Mercosur collectively agreed on tariff quotas that are crucial for local industries, offering specific benefits for the export of dairy products, honey, meats, and grains.

The agreement aims to allow 80% of industrial exports from Mercosur to enter Canada with a 0% entry tariff, marking a significant competitive advantage for the South American bloc. Argentina's President, Javier Milei, discussed these strategic goals with Canada's Prime Minister, Mark Carney, highlighting the importance of the dairy sector in this trade framework.

According to Argentine Foreign Minister Pablo Quirno, the treaty's implementation, along with the Mercosur-European Union agreement, opens new markets for high-value agro-industrial goods, necessitating improvements in efficiency and sustainability for producers. This agreement is seen as an opportunity to overcome protective trade barriers previously faced in northern hemispheres.

The negotiations, which began in 2025, could transform Argentina's dairy industry by providing stable, lucrative markets for its products. With Canada already a key investor in Argentina's mining sector, the expansion into dairy exports represents a significant diversification of trade relations.