Question Period Note: Export Diversification

Recent tariffs by the United States and an increasingly uncertain international trade environment threaten Canada's economic prosperity and increases the need for enhanced export diversification.

• International trade is key to Canada's prosperity - it accounts for 67% of Canada's GDP and supports one in six jobs.
• Recent U.S. tariffs targeting Canada have shown the costs of Canada's overreliance on our largest trading partner. These actions put thousands of jobs at risk and weaken Canada's competitiveness in the global economy.
• Meanwhile, geopolitics and unfair trading practices are challenging Canada's approach to international trade - let alone guarantee our economic security. Given these challenges, we are currently re-evaluating our approaches to trade to make Canada's economy more resilient.
• But we've also moved quickly to support Canadian exporters. For example, Global Affairs Canada is providing increased export promotion support and Export Development Canada is deploying $5 billion to help eligible businesses navigate economic challenges.
• Our government is dedicated in helping ensure that our trade becomes more resilient. Canadian exporters are encouraged to take advantage of Canada's 15 free trade agreements - covering 51 countries (including all G7 members), 63% of global GDP and 1.5 billion consumers.

Export diversification has been a long-standing priority for Canada. With trade accounting for 67% of Canada's GDP and supporting 1 in 6 jobs, Canada's economy is deeply intertwined with international markets. Export diversification mitigates risks from single market dependencies and helps to reduce the impacts of unfair trading practices, including the recent and potential additional tariffs by the United States targeting Canada.

As part of the Government's commitment to diversification, Canada's 2018 Export Diversification Strategy set a goal of increasing Canada's overseas (non-U.S.) exports by 50% by 2025 (i.e., reaching a value of $292 billion). In 2024, Canada already surpassed this target, with overseas exports reaching $296 billion.

The Government of Canada is working to help Canadian businesses navigate the current uncertain trade environment through greater export diversification. Global Affairs Canada supporting Canadian businesses to help them better succeed in the new global economic environment. The Department has already been active in providing increased assistance to Canada's trading community - such as launching a new information resource from all departments on the whole of government response to U.S. tariffs; a recently updated diversification page on the Trade Commissioner Service website; and a "Supporting Canadian Businesses Through U.S. Tariffs" webpage. GAC has promoted this work through social media, direct emails, and knowledge products for exporters in its database. The Department also intends to publish additional information on Canada's trade diversification efforts. GAC will also continue to mobilize key departments, such as Natural Resources Canada; Innovation, Science and Economic Development Canada; and Transport Canda, as well as provincial and territorial governments, to help guide efforts to find new suppliers and markets;

EDC has also deployed $5 billion to support Canadian exporters through existing product lines, including credit insurance and loan guarantees, to address the expected liquidity needs of exporters.

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