Trade Diversification

Trade Diversification is Key to Securing Canada’s Economic Future

Canadian exporters have long seen the United States as a natural first step into selling goods and services abroad. Our southern neighbour is, without a doubt, our closest ally and just so happens to be the world’s largest economy. The U.S. is also our largest trading partner, with trade exceeding $1 trillion annually ^[1]. With free trade agreements like the Canada-United States-Mexico Agreement (CUSMA), businesses and governments across our borders have flourished for generations, with the U.S. accounting for more than 75% of Canada’s exports annually ^[2].

But today, shifting trade policies, tariff impacts, and increasing uncertainty are bringing trade diversification to the forefront for Canadian families, businesses, and governments. As an export-based economy where exports support 4 million jobs – or 1 in 5 jobs – and generate one-third of our national revenue ^[3], finding new global markets for Canadian-made goods is essential to securing our long-term prosperity.

Canada’s greatest natural advantage – the energy, forestry, mining, and agricultural resources that lie beneath our feet – can help us take control of our economic destiny. By developing these natural resources and building the trade infrastructure required to get them to international markets, we can ensure the long-term resilience of the Canadian economy, no matter what comes our way.

It’s time for action. It’s time to build the pipelines, power plants, ports, railways, and roads to build a strong, sovereign, and prosperous future for our families.

Canadian Trade Diversification: Facts

Canada currently sends more than 75% of its total exports to the U.S. annually ^[2]
Canada’s exports account for approximately one-third of the country’s economy (2024) ^[3]
Canada’s economy is heavily reliant on exports for jobs and economic prosperity; 4 million jobs – or 1 in 5 jobs nationwide – are supported by exports ^[3]
Canada currently sends 86% of our wood product exports to the U.S. ^[4]
Canada currently sends 62% of its agri-food exports to the U.S. ^[5]
Canada currently sends more than 50% of our mineral product exports to the U.S.

A Diversified Economy = A Stronger Canada

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Several polls show that Canadians understand the importance of diversifying our trade, maximizing the value of our resources, and securing our economic future. For example:

83% of Canadians agree that Canada should focus on expanding oil and gas exports to other countries beyond the United States (Ipsos, December 2025)
80% of Ontarians support Canada developing a national strategy to become a preferred oil supplier to countries abroad (Nanos, December 2025)
75% of Canadians support the construction of new pipelines to the East Coast and British Columbia (Ipsos, December 2025)
72% of Canadians agree on expanding oil and natural gas exports for global energy security (Nanos, August 2025)

The Trans Mountain Pipeline Expansion provides Canadians with a master-class in the benefits of diversifying our trading partners. Since the project began operating in mid-2024, it has helped reduce the price differential between WCS and WTI benchmark prices, while generating several billion dollars in revenues for our governments – funds used to pay for our healthcare, education, and infrastructure.

Don’t get us wrong; as a result of our shared geography, history, and values, the United States will likely remain Canada’s largest trading partner. However, what’s clear is that Canada needs to chart its own path and explore other trade options that will help ensure our long-term economic security.

Join Us Today

Canada Action trade diversification - banner

Join us today in supporting Canada's natural resource sectors for a brighter future for our families and our country. Together, we can build a stronger, more prosperous Canada that creates lasting opportunities for all Canadians.

Canada’s agricultural and agri-food industry is an absolute economic powerhouse. It plays an instrumental role in feeding not only Canadians, but the world.https://t.co/Le3hQ4vsNj
— Canada Action (@CanadaAction) February 3, 2026

SOURCES:

_{1 - https://www.tradecommissioner.gc.ca/en/market-industry-info/search-country-region/country/canada-united-states-export.html}

_{2 - https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.canada-and-us-economics-.canada-and-us-decks.trade-stats--january-31--2025-.html}

_{3 - https://international.canada.ca/en/global-affairs/corporate/reports/chief-economist/state-trade/2025}

_{4 - https://www150.statcan.gc.ca/n1/en/catalogue/11-627-M2025061}

_{5 - https://agriculture.canada.ca/en/sector/overview}