BY SHONDELL SABAD, SENIOR STRATEGIC ADVISOR AT THE ALBERTA ENTERPRISE GROUP

Recent shifts in global trade hint at a powerful trend: Trade wars often reshape, rather than reverse, economic ties, and Canada is positioned to benefit.  When the US imposed hefty tariffs on Canadian goods, we witnessed unexpected results.  Rather than collapse, Canadian exporters adapted, turning to new markets with impressive success:

• Thanks to the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership, 2018), Canada now enjoys preferential access to ~500 million consumers across the Asia-Pacific region.
• Reuters reports that EU imports of Canadian goods jumped 26%, adding $34 billion in new trade, while UK imports rose 15.7% to $2.58 billion.  These gains, driven by Canada’s trade diversification strategy, were made possible through CETA (Comprehensive Economic and Trade Agreement, 2017).

Meanwhile, US households are feeling the pinch. According to Budget Lab, tariff-driven price increases are estimated to cost the average American family $2,400 per year in added expenses.

At AEG, we clearly see the implications: Alberta businesses in energy, agriculture, tech, and manufacturing must leverage these open doors. The world is evolving and Canada’s diversified trade position puts us ahead, not despite disruption, but because we were prepared.

The foresight shown in negotiating and signing agreements like CETA and CPTPP is now paying real dividends, opening markets, protecting Canadian exporters, and fuelling growth.  In today’s volatile trade environment, these agreements are more than just paperwork; they are both a shield against protectionism and a powerful growth accelerator.  The bigger question isn’t “Who is winning?” but whether unilateral tariffs can ever succeed in a deeply interconnected global economy.  For now, Canada’s diversification is proving its worth.

For more on the CPTPP – About the CPTPP

For more on the CETA – Expand your business in the European Union with CETA – Tradecommissioner.gc.ca

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