Manisha Arora, the director of trade for Edmonton Global, says that as Canadian businesses more seriously explore what export markets exist beyond the United States, they find the answers depend on what they export and their ability to adapt to different international standards.
"I definitely think that we've looked at the U.S. as a catchall, simply for logistical purposes," Arora told Taproot. "When we take a look at exporting outside of our borders, we look at what's the easiest and what's culturally the most similar for ease of business transactions."
For years that has meant the U.S. is Alberta's default trading partner. But as U.S. President Donald Trump continues to threaten (and change his mind on) tariffs of up to 25% on Canadian products, plus bonus tariffs on steel and aluminum, Edmonton Global has formed a Regional Tariff Ad Hoc Working Group to find ways for businesses in the region to adapt to the new realities.
Exporting is big business. The City of Edmonton's business census recently found that Edmonton companies that export employ twice the number of employees as those that do not. Zooming out to look at Alberta, in 2020, the province exported $77.5 billion in goods to the U.S., a transaction that doesn't just happen overnight — global trade is reliant on trust and relationships, Arora said.
As that trust changes, however, businesses need to diversify where they export, Arora said. A key part of that is developing the logistics to get products to new markets. Arora shared her insights on new export trade opportunities with countries that include Japan, South Korea, Mexico, Germany, and with regions that include the Middle East and South America.
"Because we have such a long-time trade relationship (with the U.S.), all those inroads have been developed over years and years and years," she said. "It's more challenging when you're going out across the pond to send your product there."
The learning curve is partly about legal standards for products, especially food and medicine. Arora offered the example of beef: To export it to Europe or Japan, she said, cattle would need to be raised differently, which will take time.
To change this is "not a one-year change, that is like a five-year change," she said. "It takes a lot for a company to actually do that because they are probably halting their production in something else to be able to do that, to send product to the European Union. It's a long-term investment that some companies just can't afford to do."
Arora gave Taproot details on what markets and products Edmonton Global has been building those relationships around.
Trade missions like this one to London, England, have helped Edmonton Global's director of trade, Manisha Arora (bottom row on the right) build insights on export opportunities for businesses from the Edmonton Region. (Supplied)
Japan: Food
Japan's potential to buy agriculture and food/beverage exports from the region is high because it is already among the top five customers of Canadian agricultural products, Arora said. Trade relationships in Japan are usually nurtured over multiple face-to-face visits, and exporters must meet the nation's standards for food safety, which are different than those in the U.S. The rewards, Arora said, can be worth the extra effort.
"If you can export into Japan, you can probably export anywhere," she said. "They have very high standards … (The Edmonton region has) a lot of companies that, once they start exporting to Japan, though it takes a long time to get there, it's very fruitful after that."
This month, Edmonton Global is making its first trip to FOODEX Japan, a major trade fair that will host 3,000 brands from 70 countries from March 11 to 14. Companies from the region that are going include Token Bitters, SYC Brewing Co., Canada Grand Enterprises, BeeMaid Honey, and Bunge Canada.
Mexico, South America: Agriculture and RVs
Another major buyer of Canadian agricultural products is Mexico, and Arora said the Edmonton region does well exporting there. Canada exports canola, wheat, beef, and more to the country. Edmonton is on the 1,164-kilometre CANAMEX Corridor, a trucking route that runs largely parallel to a rail line, with both running from Edmonton to Mexico through the U.S. In 2024, the Alberta government invested in 62 projects over three years through its provincial construction program for the trucking route.
The North American Free Trade Agreement between Canada, Mexico, and the U.S. came into effect in 1994, and it was replaced by the Canada-United States–Mexico Agreement that became active in 2020 after it was signed by Trump during his first term. Given this history, Arora said, the existing relationship between Canada and Mexico is an important one.
"We'll need each other during this time, so I think it's a good relationship to keep fostering," she said.
Stephen Moore, the president and CEO of Orion Plastics Inc., said during a Trade Talks event held by Edmonton Global on Feb. 18 that his value-added plastic materials are used in the recreational vehicle industry, among others. The U.S. is an RV-making hub, but so is South America, he said. Moore said he may target manufacturers on that continent in the future.
South Korea, Europe: Energy
In 2023, Canada exported $199.1 billion in energy to 123 countries, and the sector accounted for 10.3% of the nominal gross domestic product. Arora said work is underway to enhance relationships with South Korea for hydrogen fuel, as the country's automotive industry is interested in it, and our region is home to the Edmonton Region Hydrogen HUB.
Brent Lakeman, who has been seconded from his hydrogen role at Edmonton Global in order to the lead the HUB into an "activation phase," has represented the region on trips to countries such as South Korea. One thing he's focused on now, he recently told Taproot, is equipping the Edmonton region's manufacturing industry with the tools to build parts for hydrogen infrastructure.
Germany is another promising trade partner for hydrogen fuel, Arora said. Meanwhile, in the Nordic region of Europe, she said there are opportunities related to carbon capture. Varme Energy Inc., a company that plans to open a carbon capture and waste-to-energy facility in Alberta's Industrial Heartland, relocated its global CEO from Norway to the region at the end of last year to help bring the project to completion.
"If a company like Varme is coming in here, and they're taking a look at what our ecosystem looks like, and say, 'Yeah, we want to actually build that back home,' that's a really easy way to make trade relationships," she said. "It's just highlighting our expertise in all these things."
Middle East: Life sciences
Countries in the Middle East make up five of the top 10 oil producers in the world. Accordingly, Arora said, the region is being explored for export for products that aren't related to energy, with life sciences becoming a "huge area" of focus. Edmonton Global brought five regional companies to the World Health Expo (formerly known as Arab Health) in Dubai this year, including Zanis Tech, Sinoveda, Nanostics, Rehabtronics, and Puravita.
"We took 14 Edmonton region companies with us when we exhibited at Arab Health (last year)," Arora said of her own experience attending the event last year. "We had them do B2B meetings, they met with the ministry of health of the United Arab Emirates, and there was an extreme amount of interest. I think every country is interested in innovation in the health industry."
The Middle East in particular can offer "a lot faster decision-making," she said, in comparison to bodies like Health Canada and the Food and Drug Administration in the U.S.
"Saudi Arabia and the UAE, they are such modernizing countries that really want to be at the cutting edge of the newest technology, and that is a priority right now," she said. "We want to get our companies in front of the people there that make the decisions, because they could start selling in the Middle East before they start selling in Canada or the U.S.
Edmonton: Logistics
Work to expand global trade often happens within the Edmonton region itself. Right now, the latest cohort of the Trade Accelerator Program is underway by various organizations including Edmonton Global.
Edmonton Global also partnered with the Edmonton International Airport, Port Alberta, and Machool to launch the ShipAlberta platform, which aims to make commercial international shipping cheaper and easier. The airport also launched the YEG Wants London campaign to attract a direct flight to London, England.