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Opinion: Canada can’t diversify trade without investing in stronger global partnerships

Canada needs to think more broadly about how we enable Canadian companies to succeed internationally

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Canada has set an ambitious goal — expand trade beyond the United States and build stronger economic ties with fast-growing markets around the world. For a country as trade-dependent as ours, and for export-oriented regions such as Western Canada, this is smart policy. But there’s a gap between ambition and execution that will need to be bridged.

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While trade agreements and export strategies open doors, they don’t guarantee Canadian companies can walk through them.

In many emerging markets across Latin America, Africa and Asia, Canadian firms encounter practical barriers that go well beyond tariffs — things such as difficulty finding skilled local workers or reliable local suppliers, establishing trusting relationships with local authorities and complex community dynamics that can delay or derail projects.

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These obstacles are often the difference between a successful investment and one that never gets off the ground.

If Canada is serious about diversifying trade, we need to think more broadly about how we enable the conditions for Canadian companies to succeed internationally. That means looking at strategic tools beyond trade policy that we can leverage for market-building, including our international development assistance. This is one area where Canada already has an under-recognized advantage — a network of globally respected, experienced and locally engaged international development organizations.

For decades, Canadian development organizations have worked alongside local partners in emerging economies to strengthen skills, support small businesses and build more inclusive and resilient economies. Increasingly, these efforts are intersecting with the needs of Canadian companies operating abroad.

In Peru, for example, Canadian mining companies often operate in regions where local workforce capacity and supplier ecosystems are still developing, and where community expectations are high. Through partnerships with local community organizations, targeted training initiatives have helped prepare local workers for skilled roles in mining, while support to small and medium-sized enterprises has enabled local businesses to participate in supply chains. At the same time, community engagement efforts have helped build trust and reduce the risk of social conflict.

The result is not only stronger local economies, but also more stable and predictable operating environments for Canadian firms.

For Western Canada, this matters. Many of our companies, particularly in energy, mining, infrastructure and agriculture, operate in these kinds of environments. Beyond their technical expertise, their ability to compete globally also depends on their capacity to build strong, lasting relationships.

At the same time, there is growing recognition that responsible business practices are a core part of operational success. Projects that fail to engage local communities or invest in local capacity face higher risks, from delays to reputational damage. Those that succeed tend to take a longer-term, partnership-based approach.

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Canada has the building blocks to support this model, but we are not yet fully leveraging them.

One challenge is that the systems designed to support development and those designed to support trade and investment still operate on separate tracks, despite the many intersections between their goals. Canadian companies interested in partnering on development-focused initiatives frequently encounter complex processes, limited points of entry and timelines that don’t align with business realities.

There is an opportunity to do better. If Canada is serious about trade diversification, then aligning our development, trade and investment tools must become a priority. That means simplifying partnership mechanisms, actively connecting Canadian companies with development expertise, and ensuring public programs are designed with real-world operating conditions in mind.

In an increasingly competitive global economy, countries that succeed will be those that don’t just show up with capital, but with credible, long-term partnerships. Canada has the ingredients to lead in this space. But only if we choose to use them.

Trade diversification will not be achieved through strategy documents alone. It will be built, market by market, through the relationships we invest in today.

Nicolas Moyer has 20 years of experience in international development and humanitarian programs and policy. He is the CEO of CUSO International, which connects communities around the world with skilled Canadians to help end poverty and inequality.

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