Liberals seeking trade deal with powerful Latin American trading bloc

OTTAWA – The federal government is reviving efforts to negotiate a trade agreement with a major Latin American trading bloc.

The Global Affairs Department has opened consultations on a potential deal with Mercosur — the customs union of Argentina, Brazil, Paraguay and Uruguay.

Prime Minister Justin Trudeau visited Argentina last fall and promised to explore deeper ties with the group, which represents a market of 260 million people.

Wooing Brazil may prove difficult; that country has long complained that federal funds given to the Canadian aerospace sector amount to unfair competition.

The previous Conservative government also sought a trade deal with the South American bloc, holding rounds of talks in 2012 as well as public consultations.

The reboot now comes as Canada-bashing has become something of a political sport in Canada’s biggest market — the United States.

The federal Liberals are eager to signal Canada has other markets to turn to following the trilateral tempest over the future of NAFTA.

U.S. President Donald Trump nearly ripped up the deal this week, but then relented and said he was willing to renegotiate.

In a formal notice posted Friday, the government said it is accepting input on a potential deal with Mercosur until May 29.