Canada has an opportunity to diversify $12 billion of food and beverage exports to non-U.S. markets to protect against trade disruption, enhance global competitiveness and build a more resilient agriculture and food system. That’s according to a report by Farm Credit Canada (FCC) titled ‘The $12-billion trade shift: Canada’s opportunity to diversify food exports beyond the U.S.’
Canada’s food and beverage sector is heavily reliant on the U.S. as over three-quarters of its exports were destined to the southern neighbour, compared with 31 per cent of primary agricultural products in 2023. In terms of imports, 65 per cent of food and beverage products came from the U.S., compared to 78 per cent for primary agriculture. This reliance leaves Canadian ag and food producers vulnerable to unpredictable trade dynamics. The U.S. economy will always remain a key market for Canadian exports, but the evolving trade landscape underscores the need to diversify to non-U.S. markets.
“Canadian agriculture and food producers rely on international trade to thrive, but ongoing trade disruptions have created uncertainty and barriers to growth. Diversifying food and beverage exports beyond the U.S. will not only strengthen producers’ resilience but also benefit Canadian consumers and the broader economy,” said 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.”
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