The state has potential to expand trade relations with the Canadian market in sectors such as agritech, defense, aviation, footwear, and mining
By Pedro Augusto
Exports from Rio Grande do Sul to Canada declined by an average of 1.5% per year between 1997 and 2025, in contrast with Brazilian exports to the country, which grew by 9.4% over the same period. Nevertheless, the Chamber of Commerce Brazil-Canada (CCBC) believes that trade between Rio Grande do Sul and the Canadian market could gain new momentum. Growth opportunities lie in technology applied to agribusiness, defense, aviation, footwear, and mining.
This assessment comes from Fernanda Fossati, coordinator of CCBC’s Rio Grande do Sul Chapter and partner at TozziniFreire. In her view, one of the main opportunities lies in transferring knowledge and technology to the agribusiness sector. The potential does not necessarily involve importing machinery, since Rio Grande do Sul has a well-developed agricultural equipment industry, but rather information technology solutions, innovation, and genetics.
According to the coordinator, the Canadian market has made advances in genetics and production technologies that could benefit companies and farmers in Rio Grande do Sul. The state’s innovation ecosystem also supports these connections.
Defense and aviation follow a similar pattern. Rio Grande do Sul develops technologies and software for these sectors, and cooperation with Canada could involve both technological solutions and equipment and inputs.
Footwear and mining expand trade opportunities
The footwear industry also presents an opportunity to diversify exports. Rio Grande do Sul is home to one of Brazil’s main industrial hubs for the sector and faces the challenge of finding new markets for its products.
“There is a huge industrial hub here that is looking for new markets,” says Fernanda. Diversification is particularly relevant given the current concentration of exports. In 2025, agribusiness accounted for 76.6% of Rio Grande do Sul’s exports to Canada.
Mining could also foster a two-way relationship. Fernanda points to phosphate projects in Rio Grande do Sul, involving a key input for fertilizer production, as an opportunity to bring local companies and foreign investors closer together.
Canada already holds a strategic position as a fertilizer supplier to the state. In 2025, potassium chloride accounted for 91.7% of the value and 99.1% of the volume of Rio Grande do Sul’s imports from Canada, totaling US$261.2 million and 853,100 metric tons.
Brazilian exports to Canada reached US$7.25 billion in 2025, with agribusiness accounting for US$1.3 billion. “We see significant room for this market to develop and for this bilateral relationship to truly take shape,” says Fernanda.
The challenge is to turn an institutional presence into lasting business connections. The strategy involves connecting companies, universities, industry associations, and potential Canadian partners. CCBC has expanded its presence at business and innovation events across the state, strengthening ties with institutions such as Farsul, Fiergs, and Tecnopuc. The goal is to combine knowledge of the Canadian market with concrete business opportunities.
