Question Period Note: TRADE DIVERSIFICATION

Q1 – How is the Government supporting exporters to diversify market?
Q2 – What are priority markets for trade diversification?

R1 - Trade diversification is our top priority. We remain steadfast in defending Canada's interest around the world, including in the United States and China, through advocacy and engagement, while at the same time advancing diversification priorities.
Budget 2025 announced ambitious targets to double non-United States exports over the next decade, including several targeted investments for the sector: an additional $75 million over five years, starting in 2026-2027, for the AgriMarketing Program to help businesses expand beyond traditional trade partners; a $97.5 million increase to the Advanced Payments Program to support the canola sector; $107.3 million over five years towards modernising digital trade tools and services; and $32.8 million over four years and $9.6 million ongoing to secure, expand, and restore market access for Canadian agriculture and agri-food, fish and seafood sectors.
Together with the Canadian Food Inspection Agency, we are advancing Canada’s market diversification objectives by facilitating new market access for Canadian agriculture and agri‑food products and supporting the Government’s ambitious trade agenda.
In response to global trade shifts, we are advancing an ambitious free trade agreement agenda to reduce reliance on the United States, double overseas exports within a decade, and attract $1 trillion in investment within five years. Canada is currently implementing recently signed trade agreements with Indonesia and Ecuador; engaging in negotiations with India, the United Arab Emirates, the Philippines, and Thailand; and pursuing discussions to improve trade with key markets, including ASEAN and Mercosur.
We see opportunities for Canadian agriculture and agri-food products around the world, and we recognise that exporting and securing new markets requires a concerted effort by both government and industry.
R2 - We see opportunities for Canadian businesses to both leverage access in established markets while unlocking new opportunities and to expand into new markets around the world, particularly in high-growth, emerging regions.
Expanding into the Indo-Pacific is a clear priority, and Canada’s Indo-Pacific Strategy is the whole-of-government approach to accelerate trade diversification and to position the sector as a stable and reliable supplier of agri-food products and a key partner in the region’s food security.
The Government is actively negotiating and implementing new bilateral and regional free trade agreements to open opportunities to grow and diversify the agriculture sector’s export markets.
Over the last year, Canada concluded major bilateral trade agreement negotiations with Indonesia and Ecuador. The Canada–Indonesia Comprehensive Economic Partnership Agreement will deepen economic ties with Indonesia, a nation of nearly 282 million people with a thriving $1.9 trillion economy in 2024; and the Canada–Ecuador Free Trade Agreement is expected to boost bilateral trade which reached $1.9 billion in 2025.
These agreements will expand opportunities for Canadian exporters by providing preferential access, reducing tariffs across key agriculture sectors (meat, cereals, oilseeds, pulses, pet food, processed foods), and including enforceable provisions and mechanisms to resolve non-tariff barriers.
Canada and ASEAN are aiming to conclude negotiations in 2026 with Canada and Mercosur aiming to conclude this summer. Further, the substantial conclusion of negotiations for Costa Rica’s accession to the CPTPP was announced on May 5, 2026 with the accession process for Uruguay already underway. Canada has launched new negotiations with Philippines, UAE and India, with a view to conclude this year.
We are already planning ahead for free trade negotiations with Thailand, and Turkey.

Advancing Trade Diversification for Agriculture and Agri-Food
The Government of Canada is working on multiple fronts to advance Canada and the sector’s trade diversification ambitions, including:
• Engaging in multiple concurrent trade negotiations
• Resolving market access issues and undertaking regulatory and technical cooperation activities with key partners
• Supporting the sector’s market development activities through Canada Brand, the Canada Pavilion Program, and the AgriMarketing Program
• Providing exporters with dedicated AAFC and CFIA in-market expertise through the Agri-food Trade Commissioner Service and the Indo-Pacific Agriculture and Agri-food Office
• Collaborating with provincial and territorial governments as well as industry through dedicated sectoral tables
• Conducting official trade missions to key markets
• Advancing trade-facilitating infrastructure through the Trade Diversification Corridors Fund and the Major Projects Office
Agriculture, Agri-food, Fish and Seafood Trade Diversification Overview
Canada’s agri-food and seafood exports totalled $101.2 billion in 2025, representing an increase of $800 million (1%) from 2024. Canada’s exports have grown steadily over the past decade despite considerable shocks and shifts to the global trade environment.
However, Canada’s exports remain heavily concentrated with over 67% destined for the United States (60.6%) and China (6.65%), where the sector is facing significant trade challenges as a result of trade policy shifts and heavy tariffs. While the United States and China continue to be key markets for the sector, diversification will underpin the sector’s resilience and continued export growth ambitions.
Competitors such as Australia, the United Kingdom, and Brazil are also ramping up efforts to position themselves as preferred suppliers, while the United States is aggressively pursuing market access openings. To maximize Canada’s efforts amongst the competition, coordination of federal, provincial, and territorial efforts is key.
Industry looks to the Government of Canada to help resolve trade barriers and advance market access in diverse markets around the world. Agriculture and Agri-Food Canada and the Canadian Food Inspection Agency help Canadian agri-food businesses access and expand into international markets by resolving trade barriers and coordinating export support. AAFC and CFIA experts work collaboratively to identify promising markets, resolve market access issues, support trade promotion, connect exporters, and provide custom market intelligence.
On September 5, 2025, Prime Minister Carney announced an injection of an additional $75 million over five years (2026 to 2031) into the AgriMarketing Program to support market diversification. The stream which supports both National Industry Associations and Small and Medium Enterprises started accepting applications in February 2026. These projects launched in early 2026, will permit the program to better assist industry to explore new opportunities and manage risk by diversifying their exports, particularly to high-growth areas such as Africa, the Middle East, and the Indo-Pacific. It also supports sectors most affected by trade barriers, like canola (as well as beef, pork, pulses, horticulture, and fish and seafood), and aligns with Canada’s Indo-Pacific Strategy, shifting focus beyond traditional trade partners like the United States and China.
The Canada Brand is a marketing program for Canadian agri-food exporters and aims to create a consistent image and reputation for Canadian food and beverage products worldwide. It helps global consumers recognize Canada’s products and showcases the best attributes of the sector – quality, diversity, innovation, and sustainability. The Canada Brand is leveraged by federal and provincial partners and over 250 industry members. This pan-Canadian branding strategy fosters the long-term competitiveness for the sector, positions our Canadian companies for success in an increasingly crowded international marketplace, and builds awareness of all Canada has to offer in international markets.
The Canada Pavilion Program helps small- and medium-sized Canadian food and beverage exporters participate in seven annual flagship international trade events through financial assistance and customizable turn-key booths. In 2024-2025, over 300 exhibitors secured more than 10,000 business leads and made nearly $230 million in on-site sales.
AAFC and CFIA’s presence abroad strengthen Canada’s Trade Commissioner Service and Technical Specialists Abroad program with dedicated in‑market agri‑food expertise in 25 cities across 17 key markets. The network is made up of 62 experienced agri‑food trade commissioners and technical specialists who bring deep sector knowledge and technical expertise to help Canadian exporters navigate regulatory requirements, resolve market access issues, capitalise on opportunities from trade agreements, and identify commercial opportunities.
As part of Canada’s presence abroad under the Indo-Pacific Strategy, AAFC, in partnership with the CFIA, established a dedicated Indo-Pacific Agriculture and Agri-Food Office in Manila, Philippines, in 2024 to advance opportunities for Canadian products in the region. During the first 3 years of the Indo-Pacific Strategy implementation (2023–2025), Canadian agri-food and seafood exports to the Indo Pacific region fell by 10.7% from $22.8B to $20.4B. However, most of that decline was concentrated in China, and India, the ASEAN countries, remained stable over that 3-year period).
There is an enormous opportunity for Canadian businesses, but diversifying markets and enhancing trade resilience will be challenging and requires long-term planning and investment by industry, with support from the Government, to effect lasting change.
Trade Negotiations
As part of its trade diversification strategy, which aims to double overseas exports within a decade, attract $1 trillion in investments over five years, and reduce reliance on the U.S. market, the Government of Canada has intensified trade negotiations to open new markets and create more opportunities for Canadian exporters. Efforts are focused in the Indo-Pacific region, the world’s fastest growing-region and home to six of Canada’s top 13 trading partners.
In this context, Canada and Indonesia signed the final text of the Canada-Indonesia Comprehensive Economic Partnership Agreement (CEPA) in September 2025, and the CEPA is currently in the House of Commons for ratification. This agreement strengthens ties with a country of nearly 282 million people and a $1.9 trillion economy (2024).
Canada is also negotiating a free trade agreement with the Association of Southeast Asian Nations (ASEAN), a region with a GDP of over CAD $3.86 trillion. ASEAN is Canada’s fifth-largest merchandise trading partner, with bilateral trade reaching CAD $41.66 billion in 2023. The goal was to conclude negotiations by 2026.
Recently, Canada announced plans to launch bilateral negotiations with several Indo-Pacific partners, including FTAs with the Philippines and Thailand, and a CEPA with India.
Canada is also advancing Costa Rica’s accession to the CPTPP, a gold-standard agreement that benefits Canada’s agriculture and agri-food sector by ensuring competitive access to key markets. The sector stands to gain further from the CPTPP’s recent announcement on Uruguay’s potential accession.
Beyond the Indo-Pacific, Canada concluded FTA negotiations with Ecuador in 2025, expected to boost bilateral trade, which reached $1.9 billion in 2024.
Canada has also signaled its intent to negotiate a CEPA with the United Arab Emirates, the Middle East’s second-largest economy, and resumed FTA talks with Mercosur, the world’s fifth-largest economic bloc.

• In 2025 Canada’s agri-food and seafood exports grew to $101.2 billion which was $1B higher than last year.
• The sector's exports are heavily concentrated in a few markets, with more than 67 percent going to the U.S. and China.
• Preliminary data for the first three months of 2026 show exports totalled $23.7 billion compared to $25.7 billion for same period 2025.
• We are focused on growing exports in existing markets and pursuing new opportunities to sell Canada’s high-quality, safe products around the world will help the sector manage risk and support continued growth.