Canada’s cattle industry is warning that greater access for South American beef under a Mercosur trade agreement could undermine herd rebuilding and expose Canadian ranchers to more competition without delivering equivalent benefits.

The Canadian Cattle Association and National Cattle Feeders’ Association outlined their opposition in a joint statement May 6, calling on Ottawa to exclude additional beef market access from an agreement.

The organizations support expanding international trade but argue that any deal must provide reciprocal opportunities and protect the long-term viability of Canadian production.

Mercosur is a South American trading bloc. Canada’s negotiations involve Argentina, Brazil, Paraguay and Uruguay. Talks began in March 2018 and were relaunched in October 2025 following a pandemic-related pause.

Ottawa presents the negotiations as an opportunity to diversify export markets and strengthen commercial relationships beyond the United States. However, the interests of agricultural exporters, input suppliers and livestock producers do not necessarily align.

For cattle producers, a central concern is the effect additional imports could have on decisions to rebuild Canada’s breeding herd.

The cattle organizations argue that producers recovering from drought, higher costs and market disruptions need confidence in future returns before expanding. They warn that greater competition from lower-cost imports could discourage investment, limiting domestic production and increasing reliance on foreign beef.

In a separate May 25 statement, the Canadian Cattle Association reported that imported beef accounted for approximately 30 per cent of Canadian consumption in 2025.

The association said total beef imports reached their highest level since 1993 and imports from Mercosur countries had increased 238 per cent since 2021.

Those figures describe existing trade, rather than an increase caused by a new agreement.

The association also argues that differences in animal-health, environmental and labour requirements leave Canadian farmers competing against producers with lower compliance costs.

Animal-health concerns featured in the joint statement as well. The cattle organizations questioned disease reporting and sanitary compliance in parts of Mercosur. Those concerns represent the industry’s assessment and do not, by themselves, establish that imported products are unsafe.

The groups also warned about possible friction with the United States, given the Canadian beef sector’s integration with North American supply chains.

Agricultural reporting reflects the division over the proposed agreement.

AgCanada reported in May that beef producers were bringing their objections to legislators. Its June coverage highlighted support for a Mercosur agreement from the fertilizer industry, contrasting that position with livestock producers’ concerns.

The difference matters when assessing whether a deal benefits Canadian agriculture. An agreement could expand sales for agricultural suppliers while increasing competition for farmers producing food.

Federal consultations also found differing positions within agriculture. Some cereal, grain, sheep and potash interests supported renewed negotiations, citing export opportunities. Beef, pork and supply-managed sectors sought protection against additional market-access concessions.

An archived federal economic assessment published in 2020 projected broader Canadian gains, with manufacturing and industrial tariff reductions identified as a major driver of increased production.

However, that model assumed the removal of all agricultural and non-agricultural protections, including sensitive products. It was not an assessment of final negotiated terms or a forecast of individual farm incomes.

For Canadian ranchers, the unresolved question is whether any additional export opportunities would outweigh increased competition at home. The cattle organizations’ position is that further Mercosur beef access would put domestic production at risk.