Thank you, Madam Chair, for the opportunity to address the committee with my colleagues. I'm happy to see how we can assist with this study.
Trade in Canada has evolved over decades within a global trading system based on rules, new free trade agreements and a fairly stable geopolitical environment.
Canada's trading patterns reflect its proximity to the U.S., the world's largest economy.
That said, the recent shift in American trade policy and the new geopolitical reality have dramatically altered the landscape. The reasons for trade diversification have never been so clear.
Earlier this fall, the Prime Minister announced work towards a new trade diversification strategy and a goal of doubling Canada's non-U.S. exports over the next decade. This strategy will focus government efforts in support of diversification objectives, alongside new investments in trade-enabling infrastructure, among other things.
We know that ultimately it is Canadian businesses that will diversify and expand Canada's trade, and this can be challenging, requiring new operating models, new risks and new partnerships. We also know that Canadian businesses have what the world wants, and they have what it takes to succeed. Between 2017 and 2024, Canadian exports to overseas markets increased by over 50%, reaching $292 billion in 2024 in non-U.S. trade.
I would like to take a moment to highlight Global Affairs Canada's priorities in helping Canadian businesses to build on that track record going forward.
First, we will continue to unlock new opportunities for Canadian companies in overseas markets. The recently signed comprehensive economic partnership agreement with Indonesia exemplifies this line of effort. Canada is also working to conclude a free trade agreement with ASEAN. We are renewing negotiations with Mercosur, and at the same time, there's a new road map for Canada-India relations that will provide a pathway for expanded trade with the world's most populous country. We are also taking a pragmatic and constructive approach to working with China, which will help expand business opportunities while supporting Canada's economic security.
Second, we will seek to capitalize further on partnerships, and reap the benefits of Canada's efforts.
Canada has already signed comprehensive free trade agreements and strengthened ties with leading world economies, such as Europe and the Indo-Pacific region.
We will intensify our efforts to encourage businesses to take full advantage of these agreements and the market access they offer, and help them through this process.
With this in mind, last month's trade mission to Italy, led by the Minister of International Trade, reaffirmed Canada's interest in trading with its European partners and expanding that trade.
We will also sustain the momentum of Canada's Indo-Pacific strategy and our team Canada trade missions to the region to capitalize on the strong interest and potential to deepen Canada's commercial ties across the Pacific.
In terms of working with Canadian businesses, we recognize that close partnership between government and business will be essential to securing these new opportunities in today's international environment. The new strategic exports office proposed in budget 2025 embodies this approach. It will help mobilize whole-of-government support for high-value export pursuits in strategic sectors.
Canada's trade commissioner service will continue to play an essential role by helping Canadian businesses diversify their markets.
In 2024-25, the TCS provided nearly 60,000 services to more than 11,000 clients, facilitated $6.1 billion in new deals and helped over 1,700 SMEs expand into 113 new markets. Ensuring that the TCS continues to deliver high-impact services to businesses alongside partners like EDC, Export Development Canada, is a top priority.
Finally, we are also very focused on attracting new investment into Canada. FDI is critical to the Canadian economy and its growth plans. It connects our firms to global markets. It unlocks new sources of capital. It embeds Canadian companies in international supply chains, and it makes them more productive and more competitive. Achieving strong alignment across federal partners in attracting FDI, including the TCS, Invest in Canada, the Major Projects Office and others, is a key focus and will enable us to attract more investment from a wider range of players.
We know that trade diversification is a shared priority across the country. We look forward to working closely with various partners, including provincial and territorial governments, indigenous groups and industry. Global Affairs Canada is committed to helping businesses diversify Canadian trade and investments to support our country's resilience and prosperity.
Thank you, and we look forward to your questions.
