The Growth Strategy Canada Cannot Afford to Ignore

TREVOR McPHERSON

President & CEO | Mississauga Board of Trade

Recent challenges in the Canada-U.S. trade relationship have exposed vulnerabilities in our economy. While these events have sparked a surge in patriotism and a push for “Made in Canada” solutions, ensuring long-term economic resilience and sustainable growth requires more than just consumer-driven behaviour shifts. Businesses and policymakers must take fundamental actions to protect Canada’s economic future and maintain our quality of life.

Diversify. Diversify. Diversify.

Canada’s economic dependence on the United States is well-documented, with approximately 75% of Canadian exports destined for the U.S. in 2024. While this integrated relationship has served both nations well, over-reliance leaves Canada vulnerable to external shocks, policy shifts, and trade disputes.

To mitigate risk and unlock new opportunities, Canada must aggressively expand into international markets, particularly where existing trade agreements provide a competitive advantage. Canada’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Canada-European Union Comprehensive Economic and Trade Agreement (CETA) presents untapped opportunities for Canadian businesses. The federal government and private sector should prioritize trade diversification strategies, leveraging these agreements to reduce dependency on any single market.

Eliminating Interprovincial Trade Barriers

It is easier for many Canadian businesses to trade internationally than to do business across provincial borders. The Canadian Free Trade Agreement (CFTA) was established to reduce such barriers, but challenges persist. A 2019 working paper from the International Monetary Fund found that internal trade barriers continued to impact Canadian GDP despite the updated agreement, suggesting that removing these barriers could increase Canada’s GDP per capita by as much as 3.8%.

Accelerating Technology Adoption

Canada continues to lag behind other developed nations in productivity growth, largely due to slower adoption of transformative technologies such as artificial intelligence (AI), automation, and digital infrastructure. According to the Organization for Economic Cooperation and Development (OECD), Canada’s productivity levels remain lower than those in the United States.

The private sector must take a more aggressive approach to implementing productivity-enhancing technologies. At the same time, government incentives— such as tax credits for AI and automation investments—can accelerate adoption. Policies that encourage R&D spending and digitization will be key to improving productivity and maintaining Canada’s global competitiveness.

Advancing Large-Scale Infrastructure Projects

Canada’s reputation as a country where major national projects face significant delays and regulatory hurdles must change. The recent commitment to highspeed rail between Toronto and Quebec City is encouraging, but similar urgency must be applied to energy infrastructure projects, which are critical for accessing new international markets and growing the economy.

Ontario’s Independent Electricity System Operator (IESO) projects that electricity demand in the province will rise by 60% by 2050, necessitating significant long-term planning and investment. Additionally, Canada must ensure regulatory frameworks support the development of energy and natural resource projects, which are essential for economic growth.

Investing in the Workforce of Tomorrow

Economic success in the coming decades will hinge on a globally competitive, highly skilled workforce. Despite ongoing trade and economic challenges, Canada must prioritize talent development to stay ahead in an era of rapid technological change.

Strong business-academia partnerships can help bridge the gap between industry needs and educational programs. Canada should expand work-integrated learning initiatives, apprenticeship programs, and upskilling incentives to prepare workers for high-growth sectors such as technology, clean energy, and advanced manufacturing.

So….are you “in”?

Is your company fully leveraging technology to remain competitive? Are you exploring international market opportunities beyond traditional trade partners? Are you actively engaging with your local board of trade to advocate for business-friendly policies?

At the Mississauga Board of Trade, we invite you to be part of a network that helps businesses thrive in a growth-oriented economic environment. Whether you are looking to invest in productivity-enhancing technologies, break into new international markets, or navigate policy changes, MBOT is here to connect, champion, and advocate for your success in Mississauga, Ontario, and across Canada.