Canada is reassessing its trade strategies in response to tariffs imposed by U.S. President Donald Trump. These tariffs have prompted the country to seek new trade opportunities both domestically and internationally. With Canada-U.S. trade relations strained, the Canadian government is focusing on “nation-building” projects under Prime Minister Mark Carney’s leadership. Provinces are also working to eliminate barriers to interprovincial trade.

Murad Al-Katib, CEO of AGT Food and Ingredients Inc., highlighted Canada’s abundant resources, particularly fresh water and land. He stated, “Food, fuel and fertilizer are going to be the drivers of the new generation economy of this country.” Al-Katib emphasized that Canada must position itself as a key exporter to meet global needs as trade dynamics shift. He made these remarks at the Global Business Forum in Banff.

Currently, between 75 and 80 percent of Canadian exports, valued at approximately $800 billion in 2024, are directed to the U.S., making Canada its second-largest trading partner after Mexico. Al-Katib noted that Canada may eventually “thank” Trump for the tariffs, saying, “Trump has punched us in the nose, and we needed it.” He acknowledged the importance of maintaining trade with the U.S. but stressed the necessity of diversifying trade relationships after over 50 years of reliance on the U.S. market.

Al-Katib founded AGT in 2001 with a small facility in Regina, Saskatchewan. The company has since grown to include 46 facilities worldwide and generates $3.2 billion in revenue.

Logistics expert Doug Smith, CEO of DP World Canada, also spoke at the forum, discussing the need for inland ports to facilitate freight movement within Canada. He pointed out that while coastal ports are part of Carney’s nation-building agenda, only one port expansion is currently planned. Smith argued that breaking down interprovincial trade barriers would require a comprehensive logistics overhaul, including the development of inland ports, which are significantly cheaper to build than coastal ones.

“This isn’t one or two warehouses and one rail depot,” Smith said. “This is tens of thousands of acres of planning that sets you up for not just what you need today, but where you’re going to go tomorrow.” He has identified several potential inland terminal sites across Canada, including Calgary, Edmonton, Nanaimo, Saskatoon, Regina, and Winnipeg.

Calgary is pursuing the Prairie Economic Gateway project, aiming to establish the largest logistics center in Western Canada by 2027, covering about 1,300 acres. Smith expressed optimism about the support from cities, stating, “It’s great that the cities are interested, that we got that support. Now, let’s find the customers who understand the shift that needs to happen.”

He also raised concerns about the current practice of Canadian goods being shipped through the U.S. to reach other destinations, sometimes even returning to Canada. “Why are Canadians shipping through the U.S. instead of using Canadian infrastructure? Where’s that answer?” Smith asked. He believes that Canada’s northern regions hold significant potential for commodity utilization, urging the country to seize the opportunity presented by the changing trade landscape.