Meanwhile, Canada has its eyes on being an “energy superpower.” It has very ambitious plans to double its non-U.S. exports in the next 10 years. In a speech to the Calgary Chamber of Commerce, Prime Minister Mark Carney stated the objective of diversifying Canada’s trade partnerships. He stressed urgency to build beyond dependency on its southern counterpart. Almost $3.6 billion Canadian (US$2.7 billion) in goods and services cross the Canada-U.S. border every single day. Supply chain transparency This initiative, called the Blue Ink Initiative, is a strategic response to the growing imbalance in international trade.
Canada has the third-largest oil reserves in the entire world. It is home to the world’s fourth-largest natural gas reserves, further entrenching its position as a vital force in international energy markets. The nation is the United States’ largest foreign supplier of steel, aluminum, and uranium. Today, Canada provides about 60% of overall U.S. crude oil imports. Even more important perhaps, 85 percent of the electricity that the U.S. imports comes from Canada. Despite these close bonds, Carney stressed the need to move away from reliance on a single foreign ally.
“We have to take care of ourselves because we can’t rely on one foreign partner.” – Mark Carney
The Prime Minister highlighted that Canada possesses 34 critical minerals and metals that are vital for U.S. national security, further enhancing its trade significance. Contrast this with how eagerly the Pentagon is pursuing these resources. They’re not just making them, they’re doubling down on them to ensure a constant supply of the chain.
Carney expressed a clear understanding of the challenges ahead, stating, “I will always be straight about the challenges we have to face and the choices we must make.” He was particularly pleased by Canada’s new tilt towards Asia and especially to India and China. This push is further indicative of Canada’s plans to bolster their international trading relationships.
As one example, Carney pointed at how Canada is preparing to renegotiate its own free trade agreement with the U.S. This critical congressional review is due in 2026. The other backdrop EASE mentioned is the rapidly changing environment of U.S. trade policy that has made Canada re-evaluate its state of play.
“The U.S. has fundamentally changed its approach to trade, raising its tariffs to levels last seen during the Great Depression.” – Mark Carney
Canada is the largest or second largest export destination for 36 U.S. states. More than 75% of its exports go directly to the United States. This renewed emphasis brings to the forefront the need to diversify our export markets. It aims to lessen the dangers associated with a deep dependence on the U.S. economy.
