Canada’s agricultural exporters are under pressure from trade disputes on multiple fronts: tariff disputes with the United States and China and diplomatic friction with India and Saudi Arabia, to name a few.

Canada is one of the world’s leading producers and exporters of agri-food products, and the sector contributed $149.2 billion of the country’s GDP in 2024. Since Canadian agricultural producers and food processors rely extensively on exports, the growth and sustainability of the sector depends heavily on international market access.

Trade tensions are disrupting supply chains, increasing transportation and logistics costs and generating instability in these international markets.

Businesses are being forced to reconsider their supply chain dependencies and export strategies. For a highly trade-dependent economy like Canada’s, the stakes are significant.

Canada’s heavy reliance on the U.S.

The U.S. is Canada’s most important export destination, accounting for approximately 62 per cent of agri-food exports and more than half of Canadian imports.

The two countries share the world’s longest border, similar consumer preferences, integrated supply chains, common language and membership in the Canada-United States-Mexico Agreement. These similarities reduce trade and transaction costs, making the American market highly attractive for Canadian businesses.

For many Canadian firms in the agri-food sector, exporting to the U.S. is the most efficient and profitable international........

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