As the pandemic has brought into stark reality, supply chains—both international and within Canada—are critical to the effective and efficient operation of the economy, delivering much-needed goods to customers across the globe. Foreign investors depend on strong transport infrastructure, fair trade rules and regulations, and access to diverse markets to enable the flow of commodities within and beyond Canadian borders.
This Spotlight examines Canada’s supply chain capabilities through the lens of international investors considering foreign direct investment in the country, and the opportunities for Canada to create more agile supply chains in the face of global megatrends that are transforming these complex global systems.
- Canada is well-positioned from a supply chain perspective because of its relationship and proximity with the United States, the largest consumer market in the world, a highly-trained workforce and good infrastructure that enables the flow of goods across the country.
- Long-established trade agreements between the Canadian government and its international partners allows for the resolution of disputes and the facilitation of efficient trade flows, which will benefit Canada as it works towards localizing manufacturing and becoming an exporter of goods.
- COVID-19 has revealed the need for Canadian supply chains to be more agile and to ensure that the economy will not be severely impacted by inefficient supply chains in future crises.
- There are underdeveloped opportunities for new trade flows which can evolve if all three levels of government work in collaboration with industry and enact proactive trade policies.