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Strengthening Canada’s Commercial Diplomacy: An Urgent Mandate for the Next Government

In today’s era of economic nationalism and geopolitical uncertainty, Canada must recalibrate its strategy — pursuing greater economic independence and reducing exposure to partners who may weaponize interdependence.
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Public diplomacy is often defined as the balanced advocacy of values and interests on the world stage. In Canada, successive governments have historically managed to maintain this strategic equilibrium.

That balance is now under growing threat, shaken by the political and economic shocks triggered by President Trump’s return to the White House. In less than three months, he has disrupted the global order by undermining open markets, national sovereignty, enduring alliances, and long-standing international norms. This will undoubtedly mean that our foreign and trade policies will have to accentuate our national interests amid this changing international system – a pivot the public is demanding.

Around the world, citizens and nations alike are experiencing heightened anxiety. This unease is particularly evident in Canada as the country is in the middle of a historic federal election. Thus far, U.S. actions dominate voter concerns, elevating foreign policy, for the first time in years, to the forefront of our public discourse.

The next Canadian government must respond decisively to public demands for stronger economic protection and a proactive approach to advancing our national interests. In parallel, Canadians are calling for enhanced security and defence to safeguard our sovereignty. A strong, resilient economy is essential to supporting these security priorities.

The next Canadian government must respond decisively to public demands for stronger economic protection and a proactive approach to advancing our national interests.

During my tenure as Minister of International Trade, I had the opportunity to work closely with visionary Canadian business leaders to open new markets and grow our domestic economy. We leveraged the global institutions that emerged from the post-Cold War order, which fostered open trade and investment.

But the international trade landscape has since dramatically shifted.

Today, global trade is increasingly marked by protectionism and politicization. Leaders across the globe are catering to the rising anti-trade sentiment. The World Trade Organization (WTO), once a cornerstone of the rules-based order, is now largely paralyzed. Exacerbating this trend, President Trump’s protectionist policies — imposing arbitrary tariffs and pressuring even close allies like Canada to prioritize U.S. interests — represent a direct violation of the very norms the U.S. once championed.

This evolving context makes it all the more important to understand how Canadian businesses became so deeply reliant on the U.S. market — a dependence for which they are not to blame. Geography placed Canada next to the world’s largest and wealthiest economy. Naturally, when Canadian companies contemplated the export market, the U.S. was the most accessible, competitive, familiar, and linguistically aligned market.

Yet times have changed. The United States, once Canada’s most reliable partner, no longer exhibits the same trustworthiness or stability. In today’s era of economic nationalism and geopolitical uncertainty, Canada must recalibrate its strategy — pursuing greater economic independence and reducing exposure to partners who may weaponize interdependence.

This reality is now acknowledged at the highest levels of government. Prime Minister Carney has declared that “our old relationship with the U.S. is over” and emphasized the need to “reimagine” Canada’s economic model. That renewal starts with a strategic imperative: diversify our trade relationships to secure long-term autonomy and resilience.

Canadian businesses now face a historic imperative to identify new markets and establish more reliable partnerships abroad. In this new global context, the next federal government must make it a top priority to promote and support Canadian commercial interests and, by doing so, reinforce national prosperity.

Therefore, if I were trade minister today, I would immediately prioritize five concrete actions:

First, I would instruct Canadian trade commissioners and commercial officers stationed in embassies around the world to intensify their efforts in promoting and facilitating trade opportunities.

Their mandate should be to proactively and strategically support Canadian businesses in expanding into new, non-U.S. markets. Although diversification has long been advocated, approximately 80% of Canadian exports still flow to the U.S., including about 95% of our oil exports — often at reduced prices. In light of Trump’s erratic economic policies, expanding and diversifying our trade partnerships is no longer a strategic choice but a national necessity for ensuring economic stability and sovereignty.

Second, rather than seeking new Free Trade Agreements (FTAs) immediately, the next government should fully leverage Canada’s existing 15 FTAs, which span 51 countries, represent 60% of global GDP, and provide access to 1.5 billion consumers. These agreements offer Canadian companies a vast and largely untapped array of trade opportunities. Yet, the overwhelming majority of our exports remain U.S.-bound. This indicates that many of these agreements are underutilized — an oversight we can no longer afford.

In this vein, I would mobilize our trade commissioners at home and abroad to launch a targeted campaign that educates Canadian firms about these agreements. This would include practical strategies for market entry, insight into diverse trade cultures, and intelligence on the specific products and services each market demands. Additionally, I would lead a diplomatic push to encourage the ten European countries that have yet to ratify the Canada-EU trade deal to move forward. This is a very rich market. Securing stronger transatlantic commercial ties must be a top priority.

As a complement, I would direct government agencies such as Export Development Canada, the Business Development Bank of Canada, and the Canadian Commercial Corporation to prioritize non-U.S. trade, offering targeted financial support and deploying innovative policy tools where needed.

At home, we must also eliminate outdated interprovincial trade barriers that hinder the free movement of goods and services within Canada. This longstanding inefficiency continues to suppress potential growth. Studies suggest that internal free trade could reduce consumer prices by up to 15% and unlock as much as $200 billion in economic value. It is absurd that a winery in Niagara can export its ice wine to several East Asian countries but not to Manitoba. In the face of a trade war initiated by our closest ally, there is no excuse not to tear down these internal walls.

Ultimately, as we expand trade externally and improve access internally, we must invest in modernizing our trade infrastructure. Future federal-provincial infrastructure plans should prioritize upgrading our trade corridors to ensure goods and services flow efficiently and competitively.

Third, I would encourage my colleague, the Minister of Foreign Affairs, to ensure that all ambassadors and diplomatic missions enhance their commercial focus. While upholding Canadian values is important, resource allocation must reflect current priorities. If Canadians expect their government to prioritize economic and security concerns, we cannot pretend to do everything equally. Budgets must follow strategy, and at this moment, our economic resilience must be front and center.

Fourth, I would recommend the appointment of a dedicated Minister for Inbound Investment. This role is currently fragmented across departments. A centralized portfolio would allow for a more focused and strategic approach to attracting foreign investment. The Minister would act as a global envoy, identifying high-potential investment opportunities and promoting Canada’s many competitive advantages — from our educated workforce to our stable governance and social cohesion.

Of course, this task won’t be easy. Many international investors are understandably wary of U.S. protectionism and may feel compelled to locate within the U.S. to avoid political risk. But Canada must not be passive. We must be bold, coordinated, and persuasive in our value proposition and communicate it strategically to the international community. A concerted strategy involving all levels of government will be essential to offering meaningful incentives and ensuring that Canada remains an attractive destination for capital.

Finally, I would revive the highly successful Team Canada Trade Missions pioneered by Prime Minister Jean Chrétien. These high-level missions brought together federal and provincial leaders, business executives, and representatives from academia, healthcare, and culture to promote Canada abroad. These missions opened doors at the highest levels, forged commercial partnerships, and enhanced Canada’s international brand.

They also had the secondary benefit of fostering stronger domestic collaboration. Political leaders left partisanship behind and worked collectively in service of national economic goals. As Chrétien often noted, the best days for federal-provincial relations occurred during Team Canada missions.

Reviving these missions — albeit in a more modern, streamlined form — would strengthen our global commercial presence and bolster internal unity. It’s smart governance, not partisan legacy, and it needs to be revived in light of Trump’s trade war against Canada.

In conclusion, Trump’s erratic, self-centred approach has created profound economic and political challenges — not only for Canada but also for many of our allies and partners across the globe. However, as the saying goes, we must not let this crisis go to waste. This moment calls for decisive action and bold leadership to reimagine Canada’s place in the world.

We have an opportunity — indeed, a responsibility — to strengthen our national unity, enhance our economic competitiveness, and assert a more self-reliant posture in our foreign policy thinking and conduct. This includes reducing our overdependence on the United States, breaking down internal trade barriers, and fostering deeper collaboration between all levels of government.

Most importantly, it requires aligning our public diplomacy with our core national interests to ensure Canada’s long-term resilience and prosperity amid the changing international order. In adversity, we are called to lead with clarity and strength. I hope we rise to the occasion.

Author
Sergio Marchi
Sergio Marchi
Sergio Marchi is an Advisor to the Institute for Peace & Diplomacy and was previously Canada's Minister of International Trade and Ambassador to the World Trade Organization.
Panel 4: Pathways to Manage Non-Proliferation in the Middle East (4:30 PM - 5:45 PM ET)

The Western powers have failed to effectively manage the increasing threat of proliferation in the Middle East. While the international community is concerned with Iran’s nuclear program, Saudi Arabia has moved forward with developing its own nuclear program, and independent studies show that Israel has longed possessed dozens of nuclear warheads. The former is a member of the treaty on the Non-Proliferation of Nuclear Weapons (NPT), while the latter has refused to sign the international agreement. 

On Middle East policy, the Biden campaign had staunchly criticized the Trump administration’s unilateral withdrawal from the Joint Comprehensive Plan of Action (JCPOA), more commonly known as the Iran Nuclear Deal and it has begun re-engaging Iran on the nuclear dossier since assuming office in January 2021. However, serious obstacles remain for responsible actors in expanding non-proliferation efforts toward a nuclear-free zone in the Middle East. 

This panel will discuss how Western powers and multilateral institutions, such as the IAEA, can play a more effective role in managing non-proliferation efforts in the Middle East.  

Panelists:

Peggy Mason: Canada’s former Ambassador to the UN for Disarmament

Mark Fitzpatrick: Associate Fellow & Former Executive Director, International Institute for Strategic Studies (IISS)

Ali Vaez: Iran Project Director, International Crisis Group

Negar Mortazavi: Journalist and Political Analyst, Host of Iran Podcast

David Albright: Founder and President of the Institute for Science and International Security

 

Closing (5:45 PM – 6:00 PM ET)

Panel 3: Trade and Business Diplomacy in the Middle East (3:00 PM - 4:15 PM ET)

What is the current economic landscape in the Middle East? While global foreign direct investment is expected to fall drastically in the post-COVID era, the World Bank reported a 5% contraction in the economic output of the Middle East and North African (MENA) countries in 2020 due to the pandemic. While oil prices are expected to rebound with normalization in demand, political instability, regional and geopolitical tensions, domestic corruption, and a volatile regulatory and legal environment all threaten economic recovery in the Middle East. What is the prospect for economic growth and development in the region post-pandemic, and how could MENA nations promote sustainable growth and regional trade moving forward?

At the same time, Middle Eastern diaspora communities have become financially successful and can help promote trade between North America and the region. In this respect, the diaspora can become vital intermediaries for advancing U.S. and Canada’s business interests abroad. Promoting business diplomacy can both benefit the MENA region and be an effective and positive way to advance engagement and achieve foreign policy goals of the North Atlantic.

This panel will investigate the trade and investment opportunities in the Middle East, discuss how facilitating economic engagement with the region can benefit Canadian and American national interests, and explore relevant policy prescriptions.

Panelists:

Hon. Sergio Marchi: Canada’s Former Minister of International Trade

Scott Jolliffe: Chairperson, Canada Arab Business Council

Esfandyar Batmanghelidj: Founder and Publisher of Bourse & Bazaar

Nizar Ghanem: Director of Research and Co-founder at Triangle

Nicki Siamaki: Researcher at Control Risks

Panel 2: Arms Race and Terrorism in the Middle East (12:00 PM - 1:15 PM ET)

The Middle East continues to grapple with violence and instability, particularly in Yemen, Syria and Iraq. Fueled by government incompetence and foreign interventions, terrorist insurgencies have imposed severe humanitarian and economic costs on the region. Meanwhile, regional actors have engaged in an unprecedented pursuit of arms accumulation. Saudi Arabia and the United Arab Emirates have imported billions of both Western and Russian-made weapons and funded militant groups across the region, intending to contain their regional adversaries, particularly Iran. Tehran has also provided sophisticated weaponry to various militia groups across the region to strengthen its geopolitical position against Saudi Arabia, UAE, and Israel. 

On the other hand, with international terrorist networks and intense regional rivalry in the Middle East, it is impractical to discuss peace and security without addressing terrorism and the arms race in the region. This panel will primarily discuss the implications of the ongoing arms race in the region and the role of Western powers and multilateral organizations in facilitating trust-building security arrangements among regional stakeholders to limit the proliferation of arms across the Middle East.

 

Panelists:

Luciano Zaccara: Assistant Professor, Qatar University

Dania Thafer: Executive Director, Gulf International Forum

Kayhan Barzegar: Professor and Chair of the Department of Political Science and International Relations at the Science and Research Branch of Azad University

Barbara Slavin: Director of Iran Initiative, Atlantic Council

Sanam Shantyaei: Senior Journalist at France24 & host of Middle East Matters

Panel 1: Future of Diplomacy and Engagement in the Middle East (10:30 AM-11:45 AM ET)

The emerging regional order in West Asia will have wide-ranging implications for global security. The Biden administration has begun re-engaging Iran on the nuclear dossier, an initiative staunchly opposed by Israel, while also taking a harder line on Saudi Arabia’s intervention in Yemen. Meanwhile, key regional actors, including Qatar, Iraq, and Oman, have engaged in backchannel efforts to bring Iran and Saudi Arabia to the negotiating table. From a broader geopolitical perspective, with the need to secure its energy imports, China is also expected to increase its footprint in the region and influence the mentioned challenges. 

In this evolving landscape, Western powers will be compelled to redefine their strategic priorities and adjust their policies with the new realities in the region. In this panel, we will discuss how the West, including the United States and its allies, can utilize multilateral diplomacy with its adversaries to prevent military escalation in the region. Most importantly, the panel will discuss if a multilateral security dialogue in the Persian Gulf region, proposed by some regional actors, can help reduce tensions among regional foes and produce sustainable peace and development for the region. 

Panelists:

Abdullah Baabood: Academic Researcher and Former Director of the Centre for Gulf Studies, Qatar University

Trita Parsi: Executive Vice-President, Quincy Institute for Responsible Statecraft

Ebtesam Al-Ketbi: President, Emirates Policy Centre​

Jon Allen: Canada’s Former Ambassador to Israel

Elizabeth Hagedorn: Washington correspondent for Al-Monitor

Panel 4: Humanitarian Diplomacy: An Underused Foreign Policy Tool in the Middle East (4:30 PM - 5:30 PM ET)

Military interventions, political and economic instabilities, and civil unrest in the Middle East have led to a global refugee crisis with an increasing wave of refugees and asylum seekers to Europe and Canada. Moreover, the COVID-19 pandemic has, in myriad ways, exacerbated and contributed to the ongoing security threats and destabilization of the region.

While these challenges pose serious risks to Canadian security, Ottawa will also have the opportunity to limit such risks and prevent a spillover effect vis-à-vis effective humanitarian initiatives in the region. In this panel, we will primarily investigate Canada’s Middle East Strategy’s degree of success in providing humanitarian aid to the region. Secondly, the panel will discuss what programs and initiatives Canada can introduce to further build on the renewed strategy. and more specifically, how Canada can utilize its policy instruments to more effectively deal with the increasing influx of refugees from the Middle East. 

 

Panelists:

Erica Di Ruggiero: Director of Centre for Global Health, University of Toronto

Reyhana Patel: Head of Communications & Government Relations, Islamic Relief Canada

Amir Barmaki: Former Head of UN OCHA in Iran

Catherine Gribbin: Senior Legal Advisor for International and Humanitarian Law, Canadian Red Cross

Panel 3: A Review of Canada’s Middle East Engagement and Defense Strategy (3:00 PM - 4:15 PM ET)

In 2016, Canada launched an ambitious five-year “Middle East Engagement Strategy” (2016-2021), committing to investing CA$3.5 billion over five years to help establish the necessary conditions for security and stability, alleviate human suffering and enable stabilization programs in the region. In the latest development, during the meeting of the Global Coalition against ISIS, Minister of Foreign Affairs Marc Garneau announced more than $43.6 million in Peace and Stabilization Operations Program funding for 11 projects in Syria and Iraq.

With Canada’s Middle East Engagement Strategy expiring this year, it is time to examine and evaluate this massive investment in the Middle East region in the past five years. More importantly, the panel will discuss a principled and strategic roadmap for the future of Canada’s short-term and long-term engagement in the Middle East.

Panelists:

Ferry de Kerckhove: Canada’s Former Ambassador to Egypt

Dennis Horak: Canada’s Former Ambassador to Saudi Arabia

Chris Kilford: Former Canadian Defence Attaché in Turkey, member of the national board of the Canadian International Council (CIC)

David Dewitt: University Professor Emeritus, York University

Panel 2: The Great Power Competition in the Middle East (12:00 PM - 1:15 PM ET)

While the United States continues to pull back from certain regional conflicts, reflected by the Biden administration’s decision to halt American backing for Saudi Arabia’s intervention in Yemen and the expected withdrawal from Afghanistan, US troops continue to be stationed across the region. Meanwhile, Russia and China have significantly maintained and even expanded their regional activities. On one hand, the Kremlin has maintained its military presence in Syria, and on the other hand, China has signed an unprecedented 25-year strategic agreement with Iran.

As the global power structure continues to shift, it is essential to analyze the future of the US regional presence under the Biden administration, explore the emerging global rivalry with Russia and China, and at last, investigate the implications of such competition for peace and security in the Middle East.

Panelists:

Dmitri Trenin: Director of Carnegie Moscow Center

Joost R. Hiltermann: Director of MENA Programme, International Crisis Group

Roxane Farmanfarmaian: Affiliated Lecturer in International Relations of the Middle East and North Africa, University of Cambridge

Andrew A. Michta: Dean of the College of International and Security Studies at Marshall Center

Kelley Vlahos: Senior Advisor, Quincy Institute

Panel 1: A New Middle East Security Architecture in the Making (10:30 AM -11:45 AM ET)

The security architecture of the Middle East has undergone rapid transformations in an exceptionally short period. Notable developments include the United States gradual withdrawal from the region, rapprochement between Israel and some GCC states through the Abraham Accords and the rise of Chinese and Russian regional engagement.

With these new trends in the Middle East, it is timely to investigate the security implications of the Biden administration’s Middle East policy. In this respect, we will discuss the Biden team’s new approach vis-à-vis Iran, Yemen, Saudi Arabia, and Israel. The panel will also discuss the role of other major powers, including China and Russia in shaping this new security environment in the region, and how the Biden administration will respond to these powers’ increasing regional presence.

 

Panelists:

Sanam Vakil: Deputy Director of MENA Programme at Chatham House

Denise Natali: Acting Director, Institute for National Strategic Studies & Director of the Center for Strategic Research, National Defense University

Hassan Ahmadian: Professor of the Middle East and North Africa Studies, University of Tehran

Abdulaziz Sagar: Chairman, Gulf Research Center

Andrew Parasiliti: President, Al-Monitor