Champagne says negotiations with Argentina, Brazil, Uraguay and could begin in earnest in the next 10 days.
Supply agreement will grow carinata oilseed crops for sustainable biofuels production in South America.
The US company controls about 88% of the South American country’s market for paper tissues and personal hygiene disposables.
Manufacturer says it is feeling pressure because most of its profits come from outside North America.
Cars destined for Latin American markets are often produced without antilock braking systems, electronic stability control, or more than two air bags.
German automaker will invest $224 million to build the plant that is expected to start up in 2016.
Auto parts maker wants to snatch up companies in China, Russia, but is cautious about India and South America.
The Pacific Alliance was formed in 2011 by Chile, Columbia, Mexico and Peru.
A BMO survey shows the US is still the most popular market by a wide margin for Canadian companies looking to expand internationally, with the EU ranked second.