Canadian exporters are increasingly looking beyond the United States and into new global markets as business confidence begins to recover from a recent low, according to a new survey from Export Development Canada.
The federal Crown corporation’s latest Trade Confidence Index shows the measure rose four points to 69.7 since the previous survey in September 2025, though it remains below the historical average of 72.4.
The findings suggest Canadian companies are adjusting their strategies in response to ongoing economic uncertainty, with many seeking opportunities in new markets while investing in their operations at home and abroad.
Stuart Bergman
“What we’re seeing unfold is a story about Canadian resilience. What we see in this latest survey is a clear action on the part of Canadian companies who are choosing to adapt to an evolving global trade environment rather than wait for a return to the old world order,” said Stuart Bergman, EDC’s Chief Economist. “While confidence is improving, we see that businesses are approaching the next six months with measured caution, focusing on finding new markets and strengthening their capabilities at home and abroad to navigate a volatile global trade environment.”
Exporters shifting strategies
The survey found 65 per cent of Canadian exporters plan to enter new markets within the next two years as companies increasingly pursue diversification.
That marks a shift from previous trade patterns. The number of companies beginning their export activities in multiple markets has more than tripled over the past decade, rising from 13 per cent in 2015 to 43 per cent in 2025.
At the same time, the share of firms launching exports solely into the U.S. has declined significantly. In 2015, 62 per cent of exporters started in the American market only. By 2025, that figure had dropped to 34 per cent.
Europe, Asia-Pacific emerge as targets
Europe and the Asia-Pacific region are among the main destinations Canadian exporters are pursuing outside the United States.
The survey found 28 per cent of companies plan to expand into Europe within the next two years, while 19 per cent are targeting Asia-Pacific markets.
The survey notes existing free trade agreements — including the Comprehensive Economic and Trade Agreement with the European Union, the Canada-UK Trade Continuity Agreement, and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership — can reduce or eliminate tariffs and simplify customs procedures.
Despite that, the survey found 29 per cent of eligible exporters are not using free trade agreements even though 69 per cent say such agreements influence where they do business.
Todd Winterhalt
“Trade agreements are one of Canada’s greatest strategic advantages. By leveraging these agreements, Canadian companies can more easily tap into in markets in Europe and Asia-Pacific where demand is rising” said Todd Winterhalt, Senior Vice-President, International Markets at EDC. “Canada has what the world needs, including leading digital technologies, energy, critical minerals and food, all of which are vital inputs to the security of countries we trade with. EDC is playing a pivotal role to facilitate this trade, providing the market intelligence, business connections and commercial solutions Canadian companies need to move from being continental traders to a truly global ones.”
Investments at home and abroad
The survey also found exporters are making strategic investments to support global expansion.
Among companies with foreign operations, 56 per cent said they plan to increase those investments in the next six months, focusing on markets including Mexico, the United Kingdom, China, Germany and the United States.
Businesses are also investing domestically in areas intended to support trade and long-term competitiveness. About 23 per cent of exporters reported investing in productivity-related improvements such as digital and communications infrastructure, utilities and systems related to standards, certifications and digital trade.
Other findings
The survey identified several additional trends among Canadian exporters:
Companies exporting to multiple markets reported stronger confidence levels, scoring 3.3 points higher than the average, while firms reliant solely on the U.S. market were 3.9 points below the average.
The top current export destinations beyond the United States are Europe at 45 per cent and the Indo-Pacific at 30 per cent, followed by Latin America and the Caribbean at 20 per cent, Mexico at 18 per cent and the Middle East and Africa at 17 per cent.
Key European markets targeted for near-term expansion include Germany at 13 per cent, France at 12 per cent and the United Kingdom at 12 per cent. In the Asia-Pacific region, Australia at eight per cent, Japan at seven per cent and China at seven per cent were among the leading targets.
About 32 per cent of exporters said they will require financing to support diversification plans over the next two years, though most expect financing conditions to remain tight or worsen.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024, 2025 and 2026.
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