Search

Trade Partner Profile: South America

Canadian Economics

By: CBoC Economics Team

  • In 2024, Canada exported $7.4 billion worth of goods to South America.¹ Imports from the continent totaled $24.1 billion.
  • Wheat is Canada’s biggest export to South America, accounting for 21 per cent of exports to the continent last year. At 17 per cent of exports, fertilizers are second on the list.
  • Gold is by far Canada’s largest import from South America. In 2024, gold imports were $8 billion, equivalent to one third of all imports from the region.
  • In addition to gold, Canada imports largely resources from South America, including a variety of industrial minerals and agricultural products, particularly sugar and coffee.
  • Canadian exports to South America have risen a modest 20 per cent in the past ten years, compared to 50 per cent for all countries.
  • Canada’s export gains have been relatively weak due, in part, to sluggish economic growth in South America, which has been driven by political instability in the continent’s largest economies.
  • The lack of a free trade agreement between Canada and several South American countries has been another barrier to export growth. Canada launched negotiations with Mercosur in 2018, a customs union which includes Brazil and Argentina—South America’s two largest economies—along with Bolivia, Paraguay and Uruguay.
  • However, discussions with Mercosur have mostly been at a standstill over the past seven years. The rapidly changing global trade landscape this year presents an opportunity to change that, although export potential would remain muted by growth prospects in both Brazil and Argentina.
  • On a positive note, Canada and Ecuador announced earlier this year they had reached a comprehensive trade agreement. Ecuador joins Chile, Colombia, and Peru on the list of South American nations which Canada has a free trade agreement with. Canadian exports to all three of those countries have shown considerably stronger growth compared to other South American countries since their trade deals came into force.
  • Canada exported $550 million worth of goods to Ecuador in 2024; a figure now poised to grow. Key exports to the country include wheat, refined oil, and dried vegetables. The trade agreement will considerably improve market access for many Canadian sectors, particularly manufacturing, forestry, and fishing.
  • Mineral fuels are South America’s largest import and a potential area of export growth for Canada. Although the continent is home to vast oil reserves—with Venezuela having the largest oil reserves globally—South American countries imported $58 billion worth of petroleum oil from outside of the region in 2024.
  • Motor vehicles and parts are the second largest import in South America. The continent’s proximity to the U.S. and Mexico, and its own motor vehicle manufacturing capabilities means it would be difficult for Canada to make inroads in the region’s automotive space.
  • Overall, trade between Canada and South America is small compared to Europe and Asia. Weak economic growth in the region and trade barriers with South America’s two largest economies are the biggest hurdles to expanding trade with the continent, the latter which can be solved more quickly to significantly improve export opportunities.

Chart 1

What Canada Exports to South America

($CAD, millions, 2024)

Bar chart showing Canada's top 7 exports to South America. They are: wheat, fertilizer, petroleum oil, machinery, vegetables, aircraft parts, and pharmaceuticals.

Sources: Trade Data Online, The Conference Board of Canada.

Chart 2

What South America Imports from Around the World

($US, billions, 2024)

Bar chart showing South America's top 8 imports from the world. They are: mineral fuels, motor vehicles and parts, pharmaceuticals, smartphones, fertilizers, aircraft parts, pesticides, and data-processing machines.

Note: Bars highlighted in red indicate export opportunities for Canada.
Sources: U.N. Comtrade, The Conference Board of Canada.

  1. In this report, South America includes Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Guyana, Paraguay, Peru, Suriname, Uruguay and Venezuela.

As the Canada–U.S. relationship is being reset, we’re examining what Canada must do to thrive in this changing world. Get the latest research.

Related Insights

See More Insights

Comments