EDC survey: Canadian companies heed the call to diversify--two-thirds plan to enter new markets

Companies gaining confidence by looking at new global markets and making strategic investments at home and abroad

OTTAWA, ON, March 5, 2026 /CNW/ - Export Development Canada's (EDC) latest biannual Trade Confidence Index (TCI) shows early signs of recovery from a record low, with the index rising four points to 69.7 since the last survey in September 2025. Although confidence remains below the historical average of 72.4, the findings point to a Canadian business community that is adapting, investing and positioning itself for opportunity in response to the ongoing economic uncertainty. 

"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."

Companies are actively diversifying

The survey found that the need to diversify is growing among Canadian exporters, with 65% planning to enter new markets in the next two years. The survey results reveal a clear departure from previous common trade strategies. The number of companies beginning their export journey in multiple markets has more than tripled over the past decade, from 13% (2015) to 43% (2025). In reaction to evolving trade policies, many are opting to begin their export journey outside of the United States. In fact, the share of companies starting to export in the U.S. only has declined by nearly half in the past 10 years, from 62% (2015) to 34% (2025).

Europe and Asia-Pacific are seen as key growth regions

Europe and Asia-Pacific are the top destinations Canadian exporters are targeting beyond the U.S., with 28% of companies planning to expand into Europe and 19% in Asia-Pacific in the next two years. This reflects exporters' efforts to balance the familiarity of well-established markets with the emerging opportunities offered by non-traditional but fast-growing regions.

Existing free trade agreements (FTAs)--including the Comprehensive Economic and Trade Agreement (CETA) with the European Union, the Canada-UK Trade Continuity Agreement, and the Comprehensive and Progressive Agreement for TransPacific Partnership (CPTPP)--are powerful tools to lower or eliminate tariffs, simplify customs procedures, and create more predictable rules for doing business abroad. The survey found that 29% of eligible exporters are not using FTAs, despite 69% saying they influence where they do business.

"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."

Companies are making strategic investments

Exporters are also making strategic investments at home and abroad to strengthen their global position. The survey found 56% of exporters with foreign operations plan to increase those investments in the next six months, focusing on key markets such as Mexico, the U.K., China, Germany and the U.S.

There is also a recognition that trade starts at home. Within Canada, companies are making trade-enabling investments that support long term competitiveness. For example, 23% of Canadian exporters invest in trade-enabling productivity enhancements such as digital and communications infrastructure, utilities (energy, water, waste systems), and intangible assets (standards, certifications, digital trade systems). 

Other findings:

• Companies that export to multiple markets continue to report significantly stronger confidence (3.3 points higher than the average), than those reliant solely on the U.S. market (3.9 points lower than the average).
• The top current destinations for Canadian exports beyond the U.S. are Europe (45%) and the Indo-Pacific (30%), followed by, Latin America and the Caribbean (20%), Mexico (18%) and the Middle East and Africa (17%).
• Top European markets targeted for near-term expansion include Germany (13%), France (12%) and the U.K. (12%). Australia (8%), Japan (7%) and China (7%) are top targets in the Asia-Pacific region.
• According of the survey, 32% of exporters report they will need financing to support their diversification plans over the next two years, yet most expect financing conditions to remain tight or even worsen.

For more information, visit edc.ca.

Survey methodology

The TCI survey was conducted between December 4, 2025, and January 15, 2026, and released on March 5, 2026. The 2025 year-end TCI received a total of 1,326 respondents, with 872 completing all five TCI questions used to calculate the overall index score. For more than 25 years, EDC's bi-annual TCI has captured the perspectives of more than 2,000 Canadian exporters, revealing information not readily available in traditional trade statistics. The index showcases the concerns and expectations Canadian exporters have for the next six months, as well as their evolving international strategies.

About EDC 

Export Development Canada (EDC) is a financial Crown corporation dedicated to helping Canadian businesses make an impact at home and abroad. EDC has the financial products and knowledge Canadian companies need to confidently enter new markets, reduce financial risk and grow their business as they go from local to global. Together, EDC and Canadian companies are building a more prosperous, stronger and sustainable economy for all Canadians. For more information and to learn how we can help your company, call us at 1-800-229-0575 or visit www.edc.ca. 

SOURCE Export Development Canada

Media Contact: Media, Export Development Canada, 1-888-222-4065, [email protected]