With U.S. President Donald Trump determined to shake up global trade, the European Commission and countries such as Germany and Spain argue the deal will help offset business lost from U.S. tariffs, and reduce reliance on China by securing access to critical minerals.

Opponents led by France, the European Union’s largest agricultural producer, say the agreement will jack up imports of cheap food products, including beef, poultry and sugar, undercutting domestic farmers.

Farmers march, block highways

Farmers have launched protests across the EU, blocking French and Belgian highways and marching in Poland on Friday.

France voted against the deal – but at least 15 countries representing 65 per cent of the bloc’s total population voted in favour, enough for approval, EU sources and diplomats said.

An EU diplomat and Poland’s agriculture minister said that 21 countries supported the agreement, with Austria, France, Hungary, Ireland and Poland against and Belgium abstaining.

German Chancellor Friedrich Merz hailed Friday’s vote as a “milestone” and said the deal would be good for Germany and for Europe.

“But 25 years of negotiations is too long. It’s vital that the next free trade agreements are concluded swiftly,” he said in a statement.

EU capitals have been given until 5 p.m. Brussels time to provide written confirmation of their votes.

This would clear the way for Commission President Ursula von der Leyen to sign the agreement with Mercosur partners – Argentina, Brazil, Paraguay and Uruguay – in Asuncion, possibly next week.

The European Commission concluded negotiationson the deal a year ago. The European Parliament will also need to approve the accord before it can enter force.

France says battle isn’t over

The free trade agreement would be the European Union’s biggest in terms of tariff reduction, removing 4 billion euros (C$6.5 billion) of duties on its exports. The Mercosur countries have high tariffs, such as 35 per cent on car parts, 28 per cent on dairy products and 27 per cent on wines.

The EU and Mercosur will hope to expand evenly split goods trade worth 111 billion euros in 2024. EU exports are dominated by machinery, chemicals and transport equipment, and Mercosur’s are focused on agricultural products, minerals, pulp and paper.

To win over deal sceptics, the European Commission has put in place safeguards that can suspend imports of sensitive farm produce. It has strengthened import controls, notably regarding pesticide residues, established a crisis fund, accelerated support for farmers, and has pledged to cut import duties on fertilisers.

The concessions were not enough to win over Poland or France, but Italy shifted from a ‘no’ in December to a ‘yes’ on Friday.

French opposition parties look to topple government

“It seems to me the balance that has been found is sustainable,” Italian Prime Minister Giorgia Meloni told a press conference.

Mathilde Panot, lower house chief of the far-left France Unbowed party, said on X that France had been “humiliated” by Brussels and on the world stage.

French far-right and far-left parties are set to launch no-confidence motions in the government over the likely approval.

French Agriculture Minister Annie Genevard has said the battle is not over and has pledged to fight for a rejection by the EU assembly, where the vote could be tight. European environmental groups also oppose the accord, saying commodities shipped to Europe will often come from deforested land.

“The simple truth is that this unpopular deal is a disaster for the Amazon rainforest and no progressive MEP that is committed to forest protection should ever support it,” Greenpeace EU campaigner Lis Cunha said.

German Social Democrat Bernd Lange, the chair of parliament’s trade committee, expressed confidence that the deal would be passed, with a final vote most likely in April or May.

— Additional reporting by Charlotte Van Campenhout, Kuba Stezycki and Alan Charlish, Giselda Vagnoni

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Italy and France last month dashed hopes for a December deal, saying they were not ready to support it until farmer fears of an influx of cheap commodities from Mercosur, such as beef and sugar, were resolved.

All 27 EU agriculture ministers have been invited to the meeting at the Commission, the EU presidency holder Cyprus said on Tuesday, although it was not clear yet how many would attend.

Farmers looking for reassurances

European commissioners for agriculture, trade and health are expected to give reassurances over future funding for farmers under the EU’s Common Agricultural Policy, including a 6.3 billion euro (C$10.2 billion) crisis fund in the next EU budget.

The Commission’s move to merge regional cohesion funds and CAP money in the next seven-year budget alarmed farming nations.

In a letter to Cyprus’s president and the head of the European Parliament on Tuesday, Commission President Ursula von der Leyen proposed accelerating 45 billion euros of support to farmers and reiterated that the 2028-2034 budget would guarantee them 293.7 billion euros.

The Commission will also review import controls, including permissible maximum levels of pesticide residues, two EU diplomats said.

“It is a critical moment to discuss demands from farmers,” one of the diplomats said.

Wooing EU members for support

The EU executive, supported by EU-Mercosur proponents such as Germany and Spain, is seeking to garner the broad majority of 15 EU members representing 65 per cent of the EU population required to authorize the EU signature, possibly as early as January 12.

They say the accord, which has been 25 years in the making and would be the EU’s largest in terms of tariff reductions, is vital to boosting exports hit by U.S. import taxes and to reduce reliance on China by securing access to critical minerals.

With Poland and Hungary opposed to the deal and France critical, the position of Italy will be a key determinant of whether the deal can be signed. A vote is expected on Friday.

The Commission had held discussions with member states over the past two weeks and the bloc was on track to sign the agreement soon, a spokesperson for the executive said.

Italy is not opposed to the deal, two Italian sources told Reuters on Tuesday, but wanted assurances – notably on reciprocity – so that imported farm products meet EU health and environmental standards. These were due to be discussed on Wednesday.

A second EU diplomat said Italy was not yet fully on board.

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Some 25 years in the making, a trade pact with Mercosur would be the EU’s largest in terms of tariff cuts.

Germany, Spain and Nordic countries say it will help exports hit by U.S. tariffs and reduce dependence on China by providing access to minerals.

Farmers fear flooded markets

“This trade agreement is the first of many that must come so that Europe gains geo-economic and geopolitical weight at a time when it is being questioned by clear adversaries, such as (Russian President Vladimir) Putin, or even by traditional allies,” Sanchez said.

“If the European Union wants to remain credible in global trade policy, decisions must be made now,” added Merz, in Brussels for a Ukraine-focused summit.

Critics of the pact, however, fear cheap commodities flooding the market to the detriment of European producers.

The summit led to an anti-deal protest by some 7,000 mostly farmers, which turned violent early in the afternoon. Belgian police fired tear gas and water cannons as some protesters hurled potatoes and rocks at police and smashed windows.

Brussels police said they had authorized a protest with 50 tractors, but 1,000 had turned up.

European Commission President Ursula von der Leyen is poised to travel to Brazil to sign the agreement concluded last year with the bloc of Argentina, Brazil, Paraguay and Uruguay.

However, she needs support from EU governments and it is unclear whether there will be the required majority of 15 countries representing 65 per cent of the EU’s population.

Poland and Hungary are opposed and France and Italy are nervous about the impact on farmers from increased imports of beef, sugar, poultry and other products.

‘We are not ready,’ says Macron

France is the EU’s largest agricultural producer.

“As we speak, we are not ready; the numbers do not add up to sign this agreement,” Macron said, adding France had been working with Poland, Belgium, Austria and Ireland to force a postponement.

In France, anger over the government’s handling of lumpy skin disease, a virus affecting cattle, has deepened farmer discontent over issues including the EU-Mercosur deal. Farmers in southwest France have blocked highways for days.

Wary of nationwide farmer protests developing like two years ago, Paris is rushing to vaccinate cattle against lumpy skin disease, while maintaining its opposition to the EU-Mercosur agreement.

EU lawmakers and governments reached a provisional agreement on Wednesday on safeguards designed to cap imports of sensitive farm products, such as beef or sugar, and to soften opposition. The European Commission is also due to issue a declaration committing to ensure aligned production standards.

However, Macron said there needed to be reciprocity, so that the EU did not open up its markets to cheap imports of products not bound by EU regulation such as on the use of pesticides.

Some of the tractors that jammed streets in Brussels’ EU quarter had banners echoing Macron’s skepticism.

“Why import sugar from the other side of the world when we produce the best right here? Stop Mercosur,” read one sign.

— Reporting by Philip Blenkinsop, Inti Landauro, Benoit Van Overstraeten, Louise Breusch Rasmussen; additional reporting Guz Trompiz in Paris.

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European Commission President Ursula von der Leyen had been expected to fly to Brazil at the end of this week to sign the accord, reached a year ago after a quarter-century of talks with the bloc of Argentina, Bolivia, Brazil, Paraguay and Uruguay.

But the dealcan be blocked by a big enough minority of EU members.France and Italy have sought to delay a vote, while Poland opposes the deal.

Italy in spotlight; Brazil warns ‘now or never’

Germany, Spain and Nordic countries say the agreement will help exports hit by U.S. tariffs and reduce dependence on China by providing access to minerals.

But opponents, who have dubbed it a “cars for cows” deal, say cheap commodities could flood the EU, including beef, to the detriment of European farmers.

Lobbying has focussed on Italy. Commission chief von der Leyen and German Chancellor Friedrich Merz met late on Monday with Italian Prime Minister Giorgia Meloni.

“If Italy is not on board, it’s over. I hope today we will see a little clearer,” the head of the European Parliament’s trade committee, Bernd Lange, told Reuters in an interview.

The Polish agriculture minister called on Italy and other nations to join a blocking minority.

Blocking the deal would require opposition of at least four EU nations making up at least 35 per cent of the population.

“We have the numbers, we have the arguments, and we are morally right. Don’t be afraid of blackmail from the automotive industry,” Minister Stefan Krajewski said in a statement.

Diplomats say it is likely that at least one other nation, such as Hungary, will dissent.

Latin American officials are growing impatient, with one Brazilian official warning it was “now or never”, as the bloc is pursuing deals with others such as Japan, India and Canada.

“If the window closes now, it won’t reopen so soon,” another Brazilian source, a diplomat, told Reuters on condition of anonymity.

“Mercosur also has other partners, other obligations,” he said.

EU Parliament tightens safeguards

France has sought to rally a blocking minority to force stronger protections for farmers.

In a concession to Paris in October, the European Commission added a mechanism tosuspend preferential access for some Mercosur farm products, such as beef, poultry and sugar, if imports rise too quickly or if prices fall too suddenly.

The European Parliament voted on Tuesday to make it easier to suspend access, by lowering the thresholds to trigger the mechanism

Parliament will now have to negotiate a compromise with EU governments which had already backed the higher thresholds.

Talks are expected to start as early as Wednesday.

Francesco Torselli, a European lawmaker from Meloni’s party said that although the safeguards were improving the treaty, they were still not sufficient to guarantee farmers could compete on a level playing field.

“We also struggle to understand the rush to approve a measure that has been stalled for years, even though we are convinced that a free trade agreement with the Mercosur region could represent a good opportunity for Europe,” he said.

— Additional reporting by Lisandra Paraguassu in Brasilia; Angelo Amante in Rome and Alan Charlish in Warsaw.

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Insisting the European Union was committed to securing a deal that worked for both sides, EU trade chief Maros Sefcovic spoke with U.S. Trade Representative Jamieson Greer and U.S. Commerce Secretary Howard Lutnick. Trump had recommended higher tariffs on the EU from June 1.

Find more tariff coverage on the Western Producer.

The European Commission, which oversees trade policy for the 27-nation bloc, remained ready to work in good faith, Sefcovic said.

“EU-U.S. trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests,” he wrote in a post on X.

Crop futures fall

Fears of retaliatory tariffs on U.S. agricultural goods drove soy and corn futures down on Friday.

“With Trump, you never know, but this would be a major escalation,” said Holger Schmieding, chief economist at Berenberg. “The EU would have to react and it is something that would really hurt the U.S. and European economy.”

The tariff threat comes as talks are stuck, with Washington demanding unilateral concessions from Brussels to open up to U.S. business while the EU seeks an agreement in which both sides could gain, according to people familiar with the talks.

EU leaders and ministers that spoke after Trump’s announcement broadly backed the European Commission’s approach.

Polish deputy economy minister Michal Baranowski, whose country holds the rotating EU presidency, said the tariff threat appeared to be a negotiating ploy.

“The European Union and the United States are negotiating,” he told reporters on the sidelines of a meeting in Brussels, adding negotiations could last until early July.

“The fact that we see some important statements in the public domain does not mean that they will translate into actions of the U.S. administration,” he said.

Dutch Prime Minister Dick Schoof said the EU would stick to the path it had chosen.

“We have seen that tariffs can go up and down in talks with the U.S,” he told reporters in The Hague.

The EU already faces 25 per cent U.S. import tariffs on its steel, aluminum and cars and so-called “reciprocal” tariffs of 10 per cent for almost all other goods, a levy that was due to rise to 20 per cent after Trump’s 90-day pause expires on July 8.

French Trade Minister Laurent Saint-Martin said Trump’s new threats did nothing to help negotiations.

“We are maintaining the same line: de-escalation, but we are ready to respond,” he wrote on X.

Italian Foreign Minister Antonio Tajani told Italian news agency ANSA that the aim remained “zero-for-zero tariffs”.

Differing wish lists

In the past week, Washington has sent Brussels a list of demands to reduce the U.S. goods trade deficit, including so-called non-tariff barriers, such as by adopting U.S. food safety standards and removing national digital services taxes, according to people familiar with the paper.

The EU response has been to offer a mutually beneficial deal that could include both sides moving to zero tariffs on industrial goods, the EU potentially buying more liquefied natural gas and soybeans and cooperation on issues such as steel overcapacity, which both sides blame on China.

The Sefcovic-U.S. call was planned as a follow-up to these exchanges and ahead of a possible early June meeting in Paris.

Robert Sockin, senior global economist at Citigroup, said he believed Trump was seeking to bring the EU to the table.

“With a 50 per cent tariff, there would be a recessionary forecast for Europe, but I am doubtful it would be enacted,” he said.

Washington says the tariffs are designed to redress the U.S. deficit in goods trade with the European Union, which was almost 200 billion euros (C$312.22 billion) last year, according to EU statistics agency Eurostat. But the United States does have a large trade surplus with the EU in services.

The European Commission has repeatedly said it preferred a negotiated solution, but is ready to wield countermeasures if negotiations fail.

The bloc put in place, but then suspended, duties on 21 billion euros of annual U.S. imports in response to the U.S. metals tariffs and has compiled a list of 95 billion euros of U.S. goods as countermeasures to the U.S. ‘reciprocal’ and car tariffs.

—Reporting by Philip Blenkinsop, Jan Strupczewski and Bart Meijer, Leigh Thomas in Paris

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Tariffs for certain nitrogen-based fertilizers will rise over three years from 6.5 per cent to an amount equivalent to about 100 per cent, a level that would effectively halt trade. For the farm produce, an additional 50 per cent duty will apply.

Why it matters: Globally, Russia is one of the leading producers and exporters of fertilizer.

The tariff hikes are expected to take effect on July 1.

More than 70 per cent of EU fertilizer consumption in 2023 was of the nitrogen-based product targeted, and Russia accounted for 25 per cent of EU imports, worth about 1.3 billion euros ($1.5 billion).

Kremlin spokesman Dmitry Peskov said in reaction that if the EU imposed huge tariffs on Russian nitrogen fertilizers, the cost of the fertilizers for the European Union would rise and their quality would fall.

He said demand for Russian nitrogen fertilizers on other export routes remained high, adding that Russian fertilizers were of the highest quality.

Russian and Belarus grain was already hit with prohibitive tariffs last year. The new tariffs apply to the 15 per cent of agriculture imports from Russia not previously subject to duties, worth 380 million euros (C$594.4 million). This includes meat, dairy produce, fruit and vegetables.

The European Commission said these imports, particularly of fertilizers, made the EU vulnerable to potential coercive actions by Russia that could threaten EU food security.

EU imports from Belarus were more limited at 92 million euros for farm produce and 30 million euros for fertilizers in 2023.

The European Commission has said the tariffs will help support domestic production and allow for diversification of supply from elsewhere.

The change to a higher fertilizer tariff includes potential mitigation measures if EU farmers see substantial price increases.

The levies will not affect transit of Russian agricultural and fertilizer exports to third countries. The EU has so far avoided imposing sanctions on them so as not to disturb global supplies, particularly to developing countries.

The European Parliament approved the hikes by 411 votes to 100, with 78 abstentions.

— Reporting by Philip Blenkinsop and Bart Meijer

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On Wednesday, prior to Trump’s announcement, the EU said it would place duties on a range of U.S. imports from next Tuesday in response specifically to U.S. metals tariffs. The bloc was still assessing how to respond to the car and broader levies.

The U.S. imports included corn, wheat, barley, rice, motorcycles, poultry, fruit, wood, clothing and dental floss, according to a document seen by Reuters. They totaled about 21 billion euros (C$32.8 billion) last year.

“We want to give negotiations a chance,” von der Leyen said on X. “While finalizing the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.”

Trump’s move was an important step towards stabilizing the global economy, von der Leyen said. But she warned that counter-tariffs could be reinstated if necessary.

“If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues,” she said, before adding: “As I have said before, all options remain on the table.”

Trump administration weighing offers

The Trump administration is weighing offers from more than a dozen countries on tariff deals and is close to reaching agreements with some of them, White House economic adviser Kevin Hassett said.

“USTR has informed us that there are maybe 15 countries now that have made explicit offers that we’re studying and considering and deciding whether they’re good enough to present the president,” Hassett told reporters at the White House, referring to the U.S. trade representative.

Principals in the administration’s trade policy will meet at the White House on Thursday to discuss how to prioritize the separate negotiations, Hassett said.

Trump’s sudden decision on Wednesday to pause most of his hefty new duties brought relief to battered markets and anxious global leaders, even as he ratcheted up a trade war with China.

His turnabout, which came less than 24 hours after steep new tariffs kicked in, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.

U.S. stock indexes shot higher on the news, and the relief continued into Asian and European trading on Thursday.

Before Trump’s U-turn, the upheaval had erased trillions of dollars from stock markets and led to an unsettling surge in U.S. government bond yields that appeared to catch Trump’s attention.

Trump kept the pressure on China, the second-biggest provider of U.S. imports, with an increase of tariffs on Chinese imports to 125 per cent from the 104 per cent level that kicked in on Wednesday.

He also signed an executive order aimed at reducing China’s grip on the global shipping industry and at reviving U.S. shipbuilding.

Trade war with China

China rejected what it called threats and blackmail from Washington.

China will “follow through to the end” if the U.S. persists, Commerce Ministry spokesperson He Yongqian told a regular press briefing. China’s door was open to dialogue, but this must be based on mutual respect, the ministry said.

Beijing may again respond in kind after already imposing 84 per cent tariffs on U.S. imports on Wednesday to match Trump’s earlier salvo.

Trump, who claims the tariffs aim to fix U.S. trade imbalances, said a resolution with China on trade is also possible. But officials have said they will prioritize talks with other countries as Vietnam, Japan, South Korea and others line up to try and strike a bargain.

China’s yuan hit its lowest against the dollar on Thursday since the global financial crisis.

Trump’s reversal on tariffs is not absolute. A 10 per cent blanket duty on almost all U.S. imports will remain in effect, the White House said. The announcement also does not appear to affect duties on autos, steel and aluminum.

The U.S. tariff pause does not apply to duties paid by Canada and Mexico, because their goods are still subject to 25 per cent fentanyl-related tariffs unless they comply with the U.S.-Mexico-Canada trade agreement’s rules of origin.

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U.S. President Donald Trump on Sunday shrugged off an earlier report of the EU plans from the Financial Times, which cited unnamed EU officials as saying they would present the idea this week.

A draft of the EU’s “Vision for Agriculture and Food” policy document, due to be published on Wednesday and seen by Reuters, confirmed the Commission would take a tougher line on imports to ensure a fair level playing field for Europe’s farmers.

“The Commission will pursue, in line with international rules, a stronger alignment of production standards applied to imported products, notably on pesticides and animal welfare,” said the draft.

“The Commission will ensure that the most hazardous pesticides banned in the EU for health and environmental reasons are not allowed back into the EU through imported products.”

The draft, which did not specify which pesticides were the most hazardous, could still change before it is published.

The EU move could block imports of U.S. soybeans and other foods treated with pesticides not used by European farmers.

A European Commission spokesperson declined to comment on the leaked draft document.

Trump said on Sunday the EU move would hurt Europe, and a White House official said the president would stand up for American farmers. Trump said the U.S. was sticking to its plans to implement reciprocal tariffs.

Tensions are running high between the U.S. and the EU after Trump’s decision to impose 25 per cent tariffs on all steel and aluminum imports from March 12 and “reciprocal” tariffs from April, as well as separate tariffs on cars, pharmaceuticals and semiconductor chips.

The EU sets maximum residue levels in food imports of some pesticides banned in the EU.

Last year the Commission proposed to keep allowing residues of the fungicide cyproconazole and the insecticide spirodiclofen – which cannot be used by farmers in the EU – in imported products, despite European Parliament lawmakers demanding the thresholds were reduced to the lowest possible limit.

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Trump signed proclamations late on Monday raising the U.S. tariff rate on aluminum to 25 per cent from his previous 10 per cent rate and eliminating country exceptions and quota deals as well as hundreds of thousands of product-specific tariff exclusions for both metals.

The measures, which will take effect on March 12, will apply to millions of tons of steel and aluminum imports from Canada, Brazil, Mexico, South Korea and other countries that had been entering the U.S. duty free under the carve-outs.

Mexican Economy Minister Marcelo Ebrard said on Tuesday that the tariff decision was “not justified” and “unfair”.

Canada’s Prime Minister Justin Trudeau called the tariffs “unacceptable”.

European Commission President Ursula von der Leyen joined the condemnation, saying the 27-nation bloc would take “firm and proportionate countermeasures”. Von der Leyen was meeting U.S. Vice President JD Vance at an AI summit in Paris on Tuesday.

The move will simplify tariffs on the metals “so that everyone can understand exactly what it means,” Trump told reporters. “It’s 25 per cent without exceptions or exemptions. That’s all countries, no matter where it comes from, all countries.”

Trump said he would follow with announcements about reciprocal tariffs on all countries that impose duties on U.S. goods over the next two days, and said he was also looking at tariffs on cars, semiconductors and pharmaceuticals.

Asked about threats of retaliation by other countries against his new tariffs, Trump said: “I don’t mind.”

Ready to retaliate

In figures likely to further irk Trump, Germany’s trade surplus with the U.S. reached a record level last year of 70 billion euros (US$72.3 billion), according to data from the German statistics office.

European Commission head Von der Leyen said she deeply regretted the U.S. decision, adding that tariffs were taxes that were bad for business and worse for consumers. EU steel exports to the U.S. have averaged about 3 billion euros (US$3.1 billion) a year over the past decade.

“Unjustified tariffs on the EU will not go unanswered – they will trigger firm and proportionate countermeasures. The EU will act to safeguard its interests,” she said in a statement.

One option for the EU would be to reactivate the tariffs it imposed in 2018 that were suspended under a truce agreed between Von der Leyen and then-U.S. president Joe Biden.

The EU tariffs on U.S. products such as bourbon, motorcycles and orange juice are currently suspended until the end of March.

The American Chamber of Commerce to the EU (AmCham EU), representing U.S. companies active in Europe, also criticized the move as harmful to jobs, prosperity and security on both sides of the Atlantic.

“The damage will extend beyond just the steel and aluminum sectors, impacting all businesses that rely on these materials throughout the supply chain,” it added in a statement.

Trump’s latest trade salvo pushed gold prices to a record high on Tuesday on safe-haven demand in Asian trading before retreating.

Canada to defend itself

Steel imports accounted for about 23 per cent of American steel consumption in 2023, according to American Iron and Steel Institute data, with Canada, Brazil and Mexico the largest suppliers.

Canada, whose abundant hydropower resources aid its metal production, accounted for nearly 80 per cent of U.S. primary aluminum imports in 2024.

Speaking on the sidelines of the Paris artificial intelligence summit, Prime Minister Trudeau said Canada would seek to highlight the negative impact of the U.S. tariffs and, if necessary, its response would be firm and clear.

“Canadians will stand up strongly and firmly if we need to,” he said.

Trump also will impose a new North American standard requiring steel imports to be “melted and poured” and aluminum to be “smelted and cast” within the region to curb U.S. imports of minimally processed Chinese and Russian metals that circumvent other tariffs.

While China exports only tiny volumes of steel to the U.S., it is responsible for much of the world’s excess steel capacity, according to the U.S. It says subsidized production in China forces other countries to export more and leads to transshipment of Chinese steel through other countries into the U.S. to avoid tariffs and other trade restrictions.

—Reporting by Steve Holland, Andrea Shalal, Jeff Mason and David Lawder. Additional reporting by Lidia Kelly in Melbourne, David Ljunggren and Costas Pitas.

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The EU and Canada have benefited from a free trade agreement since 2017, which has boosted bilateral trade by 65 per cent, and set up a raw materials partnership in 2021.

Ng met EU trade chief Maros Sefcovic for a lunch on Saturday following a meeting with Ngozi Okonjo-Iweala, the director general of the World Trade Organization in Geneva on Friday.

“Trade agreements are one thing, and we have seen really great numbers, but what more can we be doing to help Canadian businesses enter into any of the 27 member states…and what more can we do to the same in Canada” Ng said.

She said critical minerals and smaller businesses would be among the focus areas with the EU. The EU, in particular, is keen to forge partnerships to secure metals that are key for the energy transition – cobalt, lithium and nickel – to reduce its dependence on China.

Canada is also pushing to diversify its exports and set itself a target in 2018 of increasing non-U.S. exports by 50 per cent by 2025. Ng said the country was on track to meet or exceed the target.

Canada struck trade deals with Indonesia in December and Ecuador last week and is pushing hard in the Indo-Pacific region. The minister is leading a delegation including more than 200 businesses to Australia, Singapore and Brunei next week.

“We are at the table with the countries in Southeast Asia, so the Association of Southeast Asian Nations. I took a very large delegation of Canadian businesses to the Philippines in December, to Indonesia, to markets like Vietnam, Malaysia, Japan, Korea,” Ng added.

Ottawa threatened retaliatory duties and legal action against the United States after President Donald Trump announced tariffs on Canada and Mexico a week ago and before he paused their imposition for 30 days. Ng said Canada could challenge Washington at the WTO if tariffs were imposed.

“We would consider all of the options are available to Canada because Canada is a country that believes in a rules-based trading system,” Ng said.

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