Global Performance Series: Market Diversification Through Canada’s FTAs

April 17, 2025

2022

Relying on a single export market has never been a viable long-term strategy for growth, and the current global uncertainty confirms that reality, as trade policies and economic conditions continue to evolve. Staying informed and proactive is essential for Canadian businesses, both in strategizing and planning.

In the second session of the Global Performance Series, the World Trade Centre Vancouver hosted a panel of trade experts from BDC, EDC, and Global Affairs Canada, that discussed key free trade agreements, the market potential they offer, and provided actionable insights to help you expand your business’s reach beyond familiar markets and build a more resilient global strategy.

This article summarizes key insights from the session and highlights resources available to support Canadian exporters in today’s dynamic trade environment.

Global Strategy

The session included a discussion on strategies for Canadian businesses to successfully diversify into new global markets, particularly in the context of geopolitical challenges. Allison Thorne, Business Advisor, BDC, outlined a few key factors for successful market diversification:

  • Developing a detailed research strategy with a data-driven approach to help project future growth potential
  • Access personal connections, deep understanding of local business culture is a defining factor of sustainable success in foreign markets
  • Understanding consumer trends, needs and perceptions of the product or service and awareness of local and foreign competition in the market

Beyond the factors highlighted above, several other important considerations, including regulation, certification, trade, and other barriers facing Canadian businesses, are also present.

Free Trade Agreements (FTAs)

Canada has 15 FTAs covering 51 countries, offering access to nearly two-thirds of the global economy. These agreements help reduce tariffs and open doors to new opportunities, particularly for small and medium-sized enterprises (SMEs). Tapping into new markets not only helps businesses reduce risk but also opens doors to emerging economies, growing consumer bases, and sector-specific advantages. 

Eric Peterson, Deputy Director, Pacific Regional Office, Global Affairs Canada, discussed the benefits of Canada's FTAs, including predictability, non-discrimination, and preferential access. Canadian businesses can use these agreements for greater competitiveness and market expansion. Despite these advantages, many Canadian businesses are not fully utilizing these trade agreements, leaving money on the table.

Eric highlighted the Trade Commissioner Service as a resource for Canadian companies looking to internationalize. The service provides market insights, key contacts, new opportunities, and troubleshooting help. It also offers various programs, including trade missions and funding programs.

Market Potential

The Indo-Pacific, Canada's second-largest trading partner, is a diverse region of opportunity. Composed of over 40 countries, it holds 4 billion people and a 47 trillion-dollar economy. It currently has the fastest-growing middle class; it is predicted that in the 2030s, the emerging markets of the Indo-Pacific will be five times greater than the middle class of the U.S. and Europe combined. The region is forecasted to become an increasingly important market for Canada as exports to North American markets are expected to decline.

Sebastian Ng, Senior Relationship Manager, BC, Export Development Canada, spoke to the viability of the Indo-Pacific as a market alternative for trade diversification. The EDC supports Canadian exporters with financing, including direct loans, credit insurance, equity and guarantees, to help businesses expand their export activities. Additionally, EDC provides knowledge, connections, and resources to facilitate market entry and growth that can help businesses looking to expand into the Indo-Pacific.

Trade Accelerator Program (TAP)

Canadian businesses can protect themselves in challenging times by actively engaging with available resources, enabling them to take advantage of trade opportunities, leverage trade agreements, and diversify their markets to build a resilient strategy and thrive in global trade.

The Trade Accelerator Program (TAP), offered by the World Trade Centre, teaches participating businesses the step-by-step process for developing an export plan and evaluating market potential for sustainable growth. So far, TAP has supported close to 600 businesses on their global expansion journey. On average, the export revenue of TAP alumni increased by 23%, and participants forecast their export sales to grow by 47%.

Conclusion

The message coming out of this session is straightforward: relying on a single market—no matter how familiar—is a risk. Diversifying through Canada’s free trade agreements isn’t just about growth, it’s about stability and long-term resilience.There are real opportunities out there. Markets like the Indo-Pacific are growing quickly, and Canadian businesses that take the time to understand local dynamics, consumer behaviour, and competitive landscapes will be better positioned to succeed. But this work doesn’t need to happen in isolation. Organizations like EDC, BDC, and Global Affairs Canada offer financing, insights, and on-the-ground support. Programs like TAP walk companies through the process and set them up with a concrete export plan.

The tools exist. The support is in place. The next step is action.

Stay ahead of global uncertainty — get involved with World Trade Centre Vancouver and gain access to expert insights, resources, and upcoming webinars to help your business thrive in international markets.

Resource List:

Trade agreements: https://international.canada.ca/en/global-affairs/services/trade/agreements-negotiations/investment-agreements

Market Diversification Webinar Resources:

  • Tariffinder.ca: Find tariff information in just a few clicks
  • Rules of Origin Facilitator: With just a few clicks, you can find out import duties in foreign markets applicable to your product, available duty savings, detailed rules of origin, and certification procedures.
  • Export Development Canada: Manage the risks of doing business abroad and access the working capital and financing you need to grow your business.
  • Trade Credit Insurance: Protect your business against non-payment risk and unlock working capital.
  • Guarantees: Fuel your international growth with a working capital guarantee from EDC
  • Direct lending: Financing to support your international growth
  • EDC Investments: We do this through direct equity investments, co-investments and investment fund commitments.

Trade Data tools to research Preliminary Countries of Interest:

  • Trade Data Online: Generate customized reports on Canadian and U.S. trade with over 200 other countries. You can search by product code or industry category over different timeframes.
  • United Nations Comtrade Database: Conduct custom searches by product for monthly or annual data on trade among nearly 200 countries going back over 50 years.

International Trade Center Market Analysis:

  • Trade Map: Export performance, international demand and competitive and alternative markets, as well as a directory of importing and exporting companies
  • Market Access Map: Tariffs, trade remedies, regulatory requirements and preferential regimes
  • Investment Map: Combines a variety of investment and trade statistics
  • Standards Map: Shows standards on environmental protection, food safety, business ethics and more