Strengthening inter-provincial trade and redirecting $2.6 billion in exports away from the U.S. to meet domestic demand top the list of recommendations in a new report by Farm Credit Canada (FCC).
Dubbed The $12 billion Trade Shift, the report highlights Canada’s opportunity to reduce its reliance on its southern neighbour by diversifying $12 billion in food and beverage exports to new international markets.
“Canadian agriculture and food producers rely on international trade to thrive, but ongoing trade disruptions have created uncertainty and barriers to growth,” says Justine Hendricks, FCC president and CEO. “This report is FCC’s effort to focus Canadian dialogue on how diversification is important, viable and an opportunity we can’t miss out on.”
Further recommendations include maximizing benefits from Canada’s 15 existing free trade agreements—which span 51 countries and account for 66 percent of global GDP—and forging new international partnerships in high-value markets across Europe, Asia and Latin America, targeting $9.4 billion in growth beyond the U.S.
In the wine and alcohol sector alone, $271 million currently exported to the U.S. could be reallocated to satisfy growing domestic demand. An additional $412 million could be redirected to high-demand international markets such as France, Germany, the Netherlands and Spain.
Canada’s food and beverage sector remains heavily dependent on the U.S., with over three-quarters of its exports sent south in 2023. The country was also the dominant source of imports, supplying 65 percent of food and beverage goods and 78 percent of primary agriculture.
Additional strategies highlighted in the report include promoting the “Buy Canadian” movement to stimulate domestic demand and enhancing Canada’s global brand.