Survey shows firms expanding globally while cautiously rebuilding trade confidence
Canadian businesses are increasingly looking outside their traditional trading relationships as they adjust to a changing global environment, with many planning to expand into new international markets over the next two years.
The latest Trade Confidence Index from Export Development Canada found the index climbed to 69.7, an increase of four points compared with September 2025. Although the figure remains slightly below the long-term average of 72.4, the uptick suggests exporters are beginning to regain confidence despite ongoing economic uncertainty.
A key finding from the survey is the growing focus on diversification. About 65% of Canadian exporters said they plan to enter new markets within the next two years, reflecting efforts to reduce reliance on a narrow set of trading partners and strengthen global resilience.
“What we're seeing unfold is a story about Canadian resilience. What we see in this latest survey is a clear action on the part of Canadian companies who are choosing to adapt to an evolving global trade environment rather than wait for a return to the old world order,” said Stuart Bergman, EDC's Chief Economist. “While confidence is improving, we see that businesses are approaching the next six months with measured caution, focusing on finding new markets and strengthening their capabilities at home and abroad to navigate a volatile global trade environment.”
The data also points to a shift in how exporters are approaching international expansion. In 2015, just 13% of companies began exporting to multiple regions at once. By 2025, that share had risen to 43%, indicating that businesses are increasingly pursuing broader global strategies from the outset.
At the same time, the United States is playing a less dominant role as the first export destination for Canadian companies. The proportion of businesses that initially export only to the U.S. has declined from 62% in 2015 to 34% in 2025.
Europe and the Asia-Pacific region are emerging as leading targets for expansion. Approximately 28% of exporters said they plan to grow their presence in European markets within the next two years, while 19% identified Asia-Pacific as a priority.
Trade agreements are expected to help support this expansion. Agreements such as the Comprehensive Economic and Trade Agreement with the European Union, the Canada-UK Trade Continuity Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership offer Canadian companies lower tariffs and easier market access. However, the survey also found that nearly three in 10 eligible exporters are not currently using these agreements, even though many acknowledge they influence their export strategies.
“Trade agreements are one of Canada's greatest strategic advantages. By leveraging these agreements, Canadian companies can more easily tap into in markets in Europe and Asia-Pacific where demand is rising,” said Todd Winterhalt, Senior Vice-President, International Markets at EDC. “Canada has what the world needs, including leading digital technologies, energy, critical minerals and food, all of which are vital inputs to the security of countries we trade with. EDC is playing a pivotal role to facilitate this trade, providing the market intelligence, business connections and commercial solutions Canadian companies need to move from being continental traders to a truly global ones.”
The survey also indicates that companies are increasing investment to support international growth. More than half of exporters with operations abroad said they expect to boost those investments within the next six months, particularly in markets such as Mexico, the United Kingdom, China, Germany and the United States.
At home, businesses are working to strengthen productivity and competitiveness through investments in areas such as digital infrastructure, communications networks and other systems that support trade.
Exporters operating across multiple markets also reported higher levels of optimism compared with companies that rely heavily on a single destination, particularly the United States.
Despite the improving outlook, financial constraints remain a concern. Around 32% of exporters said they will need financing over the next two years to support their diversification plans, with many anticipating tighter credit conditions ahead.
The survey was conducted between December 2025 and mid-January 2026 and included responses from more than 1,300 Canadian exporters, offering a snapshot of how businesses are positioning themselves in an increasingly complex global trade landscape.
