Canada Makes Strides on Trade Diversification

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

Canadian Prime Minister Mark Carney is making progress with a trade diversification effort. He reached a new comprehensive deal with the European Union after addressing delegates in Davos, Switzerland.

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Envy of the World

Riding high on the response to his address at the World Economic Forum, Canadian Prime Minister Mark Carney said his government was brokering European trade agreements from energy to steel that he said would be the envy of the world.

Carney was lauded globally for a speech in Davos, Switzerland, that outlined a new doctrine for global affairs that countered the aggressive foreign policy strategy embraced by U.S. President Donald Trump.

"While the old world is not coming back, from its fracture, Canada can build something better, stronger, and more just," he said Wednesday. "Canada's new government is building our strength at home and engaging with principle and pragmatism -- diversifying our trade and attracting massive new investment -- to build Canada strong."

After hosting delegates from the G7, Canada in June announced a new strategic partnership with the European Union (EU) that included energy among its priorities. Carney said at the time that his nation was the one to lead a new era of global cooperation.

A joint statement from last year said they would "work together on more resilient, diversified, reliable energy supply chains, including clean tech value chains, LNG, renewables, safe and sustainable low-carbon hydrogen and other safe and sustainable low-carbon technologies, in view of increasing bilateral trade and strengthening energy security."

Liquefied natural gas (LNG) would be beneficial to a European economy looking to secure supplies due to the loss of trade with Russia due to sanctions. The fate of a U.S.-European trade deal, along with agreements on U.S.-sourced LNG, could be in jeopardy given Trump's disagreements over Greenland, potentially opening the door to alternate suppliers.

Carney's office said that while overseas, he met with business leaders and companies with a combined market value of nearly US$7 trillion, representing "immense potential" for new investments in everything from Canadian manufacturing to Canadian energy.

LNG Canada (Kitimat, British Columbia) is the nation's only facility that can deliver super-cooled gas outside of North America, though its location on the Pacific coast makes it somewhat prohibitive to European exports.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Project and Plant databases can learn more about LNG Canada--including capacities, investment values and necessary equipment--in a detailed project report.

The Art of the Steel

Canada's low-carbon steel producers, meanwhile, could find a home in the European Union. While the United States far outpaces Canada in steel production capacity, Canada has the lowest carbon footprint among major producers, which would help Europe address its climate goals.

For just steel plants alone, data from Industrial Info Resources show some $1.8 billion in investment value for projects already completed or with a high degree of confidence in Canada, with the Hamilton Steel Works facility in Ontario among the largest.

GMI subscribers can view this list of steel-related projects in Canada.

Carney added Wednesday that his country has a competitive advantage when it comes to clean and conventional energy, though only a tiny fraction of its oil and gas makes it outside of North America. Nevertheless, Carney, who is working to halve the amount of U.S. trade, said he's pushing to unleash nearly $720 billion in investments over the next five years.

A former central bank governor, Carney has managed to broker new trade arrangements from China and the Middle East, to the European Union.

"Canada is building a trading network that is the envy of the world, with preferential access to 1.5 billion consumers across 16 free trade agreements, 51 countries, and two thirds of global GDP," his office said.

By the Numbers

• 16 free trade deals pursued by Canada
• $720 billion in investments in Carney's trade strategy
• $7 trillion worth of meetings in Davos

Key Takeaways

• Canada is making strides with trade diversification.
• The country is working to halve U.S. trade.
• PM Carney's speech at Davos lauded internationally.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resource's Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).

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