Major trade agreements part of Ottawa’s trade diversification strategy
The federal government is asking Canadian employers, workers and other stakeholders to weigh in on a new wave of trade negotiations that could reshape export markets, supply chains and workforce strategies over the next decade.
Global Affairs Canada has opened public consultations on four prospective agreements: a comprehensive economic partnership with India, a similar deal with the United Arab Emirates (UAE), and free trade agreements with Thailand and the Mercosur bloc of Argentina, Brazil, Paraguay and Uruguay. The consultation period runs from Dec. 13, 2025, to Jan. 27, 2026.
The initiative is part of Ottawa’s broader push to diversify trade beyond the United States and to double Canadian exports to non-U.S. markets within 10 years, a target that could add hundreds of billions of dollars to total trade flows, according to a release from Global Affairs Canada. The department has framed the consultations as a way to ensure negotiating positions reflect “specific interests and priorities” across the country, including those of employers and workers.
Businesses, industry associations invited to provide input
The process opens a relatively short window for stakeholders — including businesses of all sizes, industry associations, and labour unions — to raise concerns and discuss opportunities related to labour markets, talent mobility, workplace standards and workforce planning in sectors that could see accelerated trade with India, the Gulf, and key emerging economies in Latin America and Southeast Asia.
The four proposed negotiations reach into regions that are increasingly important to Canadian employers for both markets and talent.
India and the UAE are being considered for comprehensive economic partnership agreements, which typically extend beyond tariff cuts to cover services, investment and, in some cases, provisions that touch on the movement of businesspersons and professionals. Thailand and Mercosur are the focus of potential free trade agreements that would liberalize the flow of goods and address non-tariff barriers in key sectors.
Wide range of issues can affect workforces, compliance expectations
Consultation documents already published by Global Affairs Canada underscore that Ottawa is seeking feedback on a wide range of issues beyond tariffs. For the Mercosur talks, the government has asked Canadians to comment on topics including goods and services trade, investment, and regulatory barriers. For the Thailand discussions, officials are looking for input on goods of export or import interest, import sensitivities, and non-tariff barriers such as technical regulations and sanitary and phytosanitary measures.
While labour and immigration aren’t the central focus of these background papers, the scope of modern trade agreements means HR leaders can expect indirect but material effects, from changes in workforce composition to new compliance expectations around working conditions, health and safety, and inclusion.
For employers with operations, suppliers or recruitment pipelines in India, the Gulf, Southeast Asia or South America, the consultations may foreshadow changes in the cost and structure of cross-border business.
More predictable trade rules with India or the UAE could prompt organizations to expand shared services, IT, engineering or back-office hubs in those markets, affecting where and how Canadian-based teams collaborate. Liberalized market access for goods and services in Thailand or Mercosur could also alter production footprints and sourcing strategies, with knock-on effects for plant locations, workforce sizes and skills demand in Canada.
At the same time, trade-related commitments on labour and environment — now common in Canadian agreements — can translate into new reporting, audit and due diligence requirements for HR, especially in sectors with complex or extended supply chains. Even where such provisions are implemented gradually, they can influence expectations around contractors, temporary agencies and overseas affiliates.
Trade diversification beyond the U.S.
Global Affairs Canada has framed these talks as part of a longer-term strategy to build “strong, diversified international partnerships that drive economic growth and create good jobs for Canadians.” The department has also linked the negotiations to its goal of expanding trade beyond the U.S. market.
“Canada is working to strengthen trade with reliable partners around the world and aims to double Canadian exports to non-U.S. markets in the next decade, which would generate $300 billion more in trade,” said Maninder Sidhu, Minister of International Trade, in the release. “Pursuing new trade negotiations will help reach this objective, open new markets and opportunities for our workers and businesses and create high-paying jobs across the country as part of our trade diversification strategy.”
The impact will vary across sectors. For example, an agreement with Thailand that reduces barriers for Canadian agri-food exports could intensify competition for specialized production and logistics talent, while deeper economic ties with India and the UAE may accelerate demand for digital, engineering and professional services roles that bridge Canadian and overseas teams.
The federal government has explicitly invited views from Canadians on the potential agreements, with submissions accepted via email and through Canada Gazette notices for each consultation. Stakeholders are being encouraged to comment on trade priorities, sectoral opportunities and sensitivities, and any barriers the negotiations should address.
Business leaders can have their say
While much of the feedback is expected to focus on tariffs and market access, the process offers a channel for HR and labour relations leaders to:
• Flag potential workforce dislocation risks tied to import competition or supply-chain reconfiguration.
• Suggest approaches to labour, skills, and inclusion chapters that support fair working conditions and responsible recruitment practices across borders.
• Highlight the HR implications of any provisions on temporary entry for businesspersons, professional recognition or digital trade that could influence remote work and cross-border HR administration.
Consultations on the Mercosur agreement and the Canada–Thailand talks each run until Jan. 27, 2026, aligning with the broader deadline set out by Global Affairs Canada.
