Canada and MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) signed a Trade and Investment Cooperation Arrangement and Action Plan on 16 June 1998.
In November 2004, at a meeting between the Brazilian President and the Prime Minister of Canada, a Joint Declaration was issues including a commitment to promote MERCOSUR-Canada trade relations by "negotiating enhanced market access in the areas of goods, services and investment, in the context of the creation of a future Free Trade Area of the Americas (FTAA)." In February 2005 MERCOSUR and Canada held preliminary discussions at the first meeting of the Canada-MERCSOUR trade and investment dialogue.
On 24 June 2011, in Asunción, Paraguay, Canada and MERCOSUR agreed to start exploratory discussions to strengthen their trade relationship. Two exploratory meetings have already been held, and a third is scheduled for May 2012 in Ottawa, Canada.