There has been tension over trade between the United States and Canada for months. Last week, US president Donald Trump said he was adding a further 10 percentage points to a 35 per cent tariff rate imposed in August. The president was unhappy with an anti-tariff advertisement by the government of Ontario that used quotes from former president Ronald Reagan.
Unsurprisingly, given the unpredictability coming out of Washington, Canada, like the Republic and many other countries, has been seeking to diversify its trade.
Taoiseach Micheál Martin was in Ottawa in September, where boosting business links was on the agenda. And earlier this week, the Government backed a new report that examined opportunities for increasing trade between the Republic and Canada.
The report says Canadian companies already employ more than 22,000 people here, while more than 19,000 in Canada are working for Irish companies.
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However, it states that there is significant potential for future growth in trade and investment. In particular, the report points to the clean tech, fintech, agri-food and life sciences sectors.
The study, commissioned by the Government, employers’ group Ibec, and the Ireland-Canada Business Association, suggests that there is potential to increase trade in goods between the two countries by €1.2 billion annually – a 34 per cent increase – and to expand trade in services by almost €500 million.
Minister of State for European Affairs Thomas Byrne, who launched the report, said Canada is a key export market for the State and an important location for its plan on market diversification.
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The report states that trade between the two countries has nearly doubled since a deal between Ottawa and the EU was reached in 2017, reaching approximately $9.6 billion in 2023. The Republic is now Canada’s 15th largest trading partner.
The report identifies 13 categories of goods across both countries poised for further growth, with the potential to add US$1.5 billion annually to bilateral trade. It also says five key service sectors show potential for export growth.
“Canada has the potential to increase exports in financial services, air transportation services and management and consulting services. Ireland has potential to increase exports in computer services [eg, tech sector exports] and insurance and pension services,” it says.
