A robust and varied trade relationship
The U.S. and Canada enjoy the world’s largest and most comprehensive trading relationship, with more than $3 billion in goods and services crossing the border between the two countries daily. Canada is a highly receptive, open, and transparent market for U.S. products and services. In 2023, Wisconsin exports to Canada exceeded the total Wisconsin exports to Mexico, China, Germany, and the United Kingdom (the following four leading destinations) combined.
Due to its geographic proximity and cultural similarity to the U.S., as well as a common language and a high level of existing cross-border trade, Canada is a strong opportunity market for Wisconsin companies across all sectors. Canada is the largest export market for U.S.-produced goods ($349.4 billion in 2024) and for goods produced in Wisconsin ($8 billion in 2024).
Following a strong recovery from the recession that ended in 2021 and continued global economic challenges, Canada’s economy has remained resilient, achieving a soft landing. In 2024, inflation remained within the Bank of Canada’s target range, and price stability reigned across all sectors. Canada is positioned well, economically and institutionally, to manage high global uncertainty and a complex geopolitical landscape.
Trade tensions, with countries such as the U.S., will have varied effects across Canadian provinces. Ontario’s economy continues to be resilient despite global uncertainties and anticipated challenges in 2025 as Canada’s manufacturing hub. Québec’s economy is expected to grow steadily in 2025, driving real GDP growth of 1.1%.
Business connections
In November 2025, the Wisconsin Economic Development Corporation (WEDC) will be leading a global trade mission to Canada. Wisconsin companies, whether new to exporting or looking to expand their exports into Canada, are invited to participate in this program. The cities included in the program, Toronto and Montreal, were chosen because of their markets’ strategic importance for Wisconsin companies. Exporting is a must for any company seeking to grow; Wisconsin companies across all sectors are encouraged to consider participating in this program.
In each city, participants will be scheduled for customized one-on-one meetings with prospective partners in the market. These partners are chosen specifically for each participating company based on the company’s business needs and objectives. Each program participant will also receive market intelligence specific to their company, detailing considerations to keep in mind when introducing the company’s product or service into the Canadian market. WEDC has eyes and ears on the ground in Canada in the form of an authorized trade representative—thus making it easier for Wisconsin companies to find local partners they can trust and taking some of the guesswork out of launching in a new market.
In addition to customized meetings and company-specific market intelligence, this trade mission offers the opportunity to meet potential partners face-to-face and visit their facilities, allowing you to gauge their sales and distribution capabilities most accurately. While virtual meetings are a great way to establish contact and discuss opportunities, meeting those partners in person can help seal the deal and propel a business relationship forward.
Canada outlook
The Canadian economy is a highly developed, mixed economy. Canada is one of the wealthiest nations in the world, with a high standard of living and excellent quality of life. Canada is the 10th-largest global economy based on nominal GDP, logging 1.3% growth in 2024 , with 1.8% growth projected for 2025.
Canada is often the first market for new Wisconsin exporters. It is similar in many ways to the U.S., in terms of buying practices, use of the English language, and proximity to the Wisconsin market (with the vast majority of goods moving by truck). Canada’s cultural make-up is highly diverse, creating opportunities to sell culturally diverse products and services in the market. Canada also has business nuances that differ between provinces, as provinces may have stronger north-south ties (with U.S. border states) than east-west connections.
Canada, the U.S., and Mexico continue to work together to refine different aspects of the U.S. Mexico Canada Agreement (USMCA). Reshoring has created opportunities for manufacturers of components and assemblies that might have previously been unable to find international customers due to the customized nature of their products.
Ontario’s economy is primarily driven by manufacturing, with the province serving as Canada’s manufacturing hub in key sectors, including aerospace, automotive, and industrial machinery. Toronto is the largest city in Canada, with a population of 7.1 million in its metropolitan area and is the country’s financial and commercial hub. The greater Toronto area, which is a part of the highly integrated Great Lakes distribution and production network, is a rich and diversified economy. The technology and innovation sectors are prominent in Ontario, with Toronto and Kitchener-Waterloo housing significant tech hubs specializing in software, artificial intelligence, and telecommunications. Ontario’s agri-food sector is robust, encompassing agriculture and food processing for domestic and international markets.
The Quebec provincial economy is highly diversified and innovative, with abundant natural resources and energy, as well as strong agriculture, manufacturing, and service sectors. With 4.3 million people in the greater metro area, Montreal is the largest city in Québec and the second-largest city in Canada. Québec maintains steady trade with the United States, with high-volume trade areas including raw materials and components for manufacturing. Montreal’s key economic sectors include life sciences, education, culture, technology, and finance.
Exclusive access
While traditional industry sectors such as oil and gas and manufacturing are all doing well currently, the 2050 net zero goal put forth by the current Canadian federal government and supported by significant government spending ($91.4 billion annually) and tax credits is driving a move away from fossil fuels in multiple areas—including grid transformation; renewables development; vehicle electrification infrastructure; energy conservation in commercial, institutional, and residential buildings; and food waste and packaging reduction. As Canada’s electricity needs continue to grow rapidly, this creates opportunities for smart grid systems. Green infrastructure upgrades—including public transit, ports, broadband networks, energy systems, social infrastructure, and natural spaces—are also a focus. In addition, sectors that surged during the pandemic—such as digital health and online retail and food sales—are seeing continued strong growth. For companies seeking opportunities in the Canadian market, regardless of sector or industry, the key is to demonstrate that their product or service carries a strong value proposition—innovative, labor-saving, cost-competitive, etc.
Companies in these sectors should especially consider attending:
- Information and communications technology
- Digital health applications
- Biotech manufacturing and services
- Advanced manufacturing
- Clean technology and energy reduction
- Automation
- Agricultural technology
- Critical minerals mining infrastructure
- Electric vehicle supply chain
