The Globe and Mail reports in its Wednesday, June 10, edition that trade diversification is a key aspect of Prime Minister Mark Carney's economic agenda. The Globe's Sophia Bertuzzi writes that a year into his tenure, results are mixed. As of April, 31 per cent of Canada's goods exports went to non-U.S. trading partners, the highest since 1997. Overseas exports have also reached record highs during this turbulent period.
The numbers have been boosted by rising gold prices, which have since moderated. Additionally, high oil prices are once again increasing trade with the U.S., the main buyer of Canadian crude.
Foreign trade diversification is progressing, reflecting a desire among exporters to broaden the economic export engine, says CIBC economist Benjamin Tal. However, he notes that initial gains are "low-hanging fruit" and sustaining this rate for another year will be challenging.
Last fall, the Carney government set a goal of doubling non-U.S. trade over a decade to $600-billion a year. Canada has typically shipped around three-quarters of its total goods exports to the U.S. -- a major benefit historically, but now seen as a liability as the White House has turned protectionist.
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