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Canada has recently intensified its efforts to diversify agricultural trade as part of a broader objective to reduce reliance on the United States. Nearly 60% of Canada’s agri-food exports are destined for the U.S., and recent political and trade tensions have highlighted the risks associated with this dependence. As a result, the federal government has launched an ambitious strategy to double exports to non-US destinations over the next ten years, and to expand trade relationships with new partners and strengthen existing agreements, particularly in the Indo-Pacific region.
Several negotiations and trade initiatives are currently underway. Discussions with ASEAN (the Association of Southeast Asian Nations) remain ongoing and involve a diverse group of economies including Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam. These negotiations are progressing slowly due to differing priorities among members, particularly on sanitary and phytosanitary measures and market access. At the same time, Canada has pragmatically initiated bilateral negotiations with Thailand and the Philippines, two ASEAN members where progress may be achieved more quickly than through the regional framework.
For the Canadian chicken sector, the negotiations with Thailand are particularly sensitive. Thailand is one of the world’s largest poultry exporters and a major supplier to global markets. Any discussion related to poultry market access must therefore be monitored closely. Similarly, the Canadian government is currently involved in negotiations with Mercosur, which includes Brazil, Argentina, Paraguay, Uruguay. Brazil, the world’s largest chicken exporter, represents a significant agricultural power and has long sought increased access to international markets, including Canada.
While Canada’s diversification strategy may be welcomed by export-oriented sectors such as beef, canola and pulses, these same sectors are also watching developments with caution, particularly regarding Mercosur, given Brazil’s strong agricultural competitiveness. For supply-managed sectors, including chicken, the position remains consistent and unchanged. Canadian chicken farmers continue to clearly communicate to government that there must be no increase in access for supply management, and that Canada must maintain over-quota tariffs at their current levels.
Beyond these negotiations, Canada is also exploring new trade relationships with India and the United Arab Emirates (UAE). India represents a large and rapidly growing market but remains a complex negotiating partner due to its own agricultural sensitivities and protectionist policies. The UAE, meanwhile, is an important regional food hub, importing large volumes of poultry products from major exporters such as Brazil and the United States. While these discussions are still at an early stage, they form part of Canada’s broader effort to expand trade relationships globally.
Canada’s engagement in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) continues to evolve as well. The United Kingdom officially joined the CPTPP in December 2024, marking the first expansion of the agreement since its creation. Canada has now completed its domestic ratification process following Royal Assent of implementing legislation in May 2026. Additional CPTPP accessions are also under discussion, including Uruguay and Costa Rica, which could further expand the agreement’s membership.
At the same time, Canada is working to stabilize its relationship with China, a key player in global agricultural trade. Recent diplomatic and technical engagement between Canadian and Chinese officials suggests a gradual effort to restore more predictable trade channels following several years of tensions. China remains an important destination for many Canadian agricultural commodities and a major influence on global protein markets.
Taken together, these initiatives illustrate the scale of Canada’s current condensed trade agenda. The government is pursuing multiple negotiations simultaneously across Asia, the Middle East and Latin America. While these efforts are intended to reduce reliance on the U.S. market, they also create important policy considerations for sectors such as chicken that focus on serving the domestic market.
For this reason, Chicken Farmers of Canada continues to closely monitor these negotiations and maintain active dialogue with government officials and trade negotiators. Representatives from CFC joined other SM5 organizations in Brasília to monitor Rounds 8 and 9 of the Canada–Mercosur negotiations and subsequently participated in the latest negotiating round held in Toronto during the week of May 25.
Discussions confirmed that Mercosur, particularly Brazil, continues to prioritize agricultural market access, including poultry, eggs, beef and refined sugar. Canadian negotiators were clear that, following the adoption of Bill C-202, Canada cannot consider any increases to tariff-rate quotas or reductions to over-quota tariffs for supply-managed sectors. While both sides have expressed an interest in concluding an agreement as early as July 2026, it remains too early to assess whether this timeline is realistic, particularly given the importance of agriculture in the negotiations.
As Canada advances this ambitious trade agenda, maintaining this balance will remain critical to ensuring that trade policy supports the broader agricultural economy while protecting the integrity of supply-managed sectors.
