Why Canada Has Become the Best Gateway to North America
Insights
4 August, 2025
Insights
4 August, 2025
By
Fabien Loszach
Canada’s European outlook is nothing new—but it is now taking on unprecedented strategic importance. For decades, Canadian companies have looked south, drawn to the geographic and cultural proximity of the United States. That historical reflex is now shifting.
““Because we want to get closer to Europe. Canada is the most European of non-European countries. We have historic ties with France and the UK, and a free trade agreement with the EU.”“
A Fragile Relationship with the U.S
Canada is by far the largest customer of the United States—it buys more than China, France, the United Kingdom, and Japan combined. In 2024, nearly 76% of Canadian exports were still destined for the American market. But that dependence has become a weakness. Any entrepreneur knows: when a single client accounts for nearly 80% of your revenue, you’re in a vulnerable position.
What once seemed like one of the world’s most solid trade relationships collapsed last November. Since Donald Trump’s return to the White House, Canada has suffered heavy trade sanctions: 25% tariffs on automobiles, 50% on steel and aluminum. These measures hit the heart of Canada’s manufacturing sector and were perceived as an incomprehensible betrayal north of the border.
Diversification: A Matter of Survival for Canada
Faced with this instability, Ottawa accelerated its economic diversification strategy. The objective: reduce exposure to the American market and build new channels of growth. Last June, the EU and Canada met in Brussels to strengthen their cooperation in response to global turbulence—a partnership notably focused on security and defense.
Since the provisional application of the Comprehensive Economic and Trade Agreement (CETA) in 2017, trade in goods between the EU and Canada has increased by 64%, reaching €75.6 billion in 2024. The European Union is now the North American country’s second-largest trading partner.
Canada also intends to build stronger commercial relations with the United Kingdom. As Thierry Warin, Director of the International Business Department at HEC Montréal, explains: “Even with transportation costs, selling to the United Kingdom could be more profitable for some Canadian SMEs than remaining on the American market.”
Canada has always positioned itself as a “trading nation” resolutely open to the world, but today, the Carney government aims to turn it into a genuine international brand. On that note, Canada has some strong arguments: it is, for example, the only G7 country with free trade agreements with all the other G7 members, making it a prime export zone.
Strategic Resources and Sovereignty: Canada’s Advantage
Reinforced by American isolationism, the current context places states in an intense geopolitical competition. Secure access to critical minerals has become a vital condition for economic prosperity: no country can maintain a high-performing manufacturing sector without capabilities in steel, aluminum, and rare earths.
But beyond merely securing supplies, this race for resources is part of a broader strategy: breaking the dependence on China, which currently dominates the critical minerals value chain.
Canada possesses a unique reservoir of strategic resources and represents a key industrial foundation for global supply chains. It holds, for example, nearly all the critical minerals needed to manufacture a battery. But fully leveraging this potential—meaning extracting, refining, and transforming these resources locally—requires major international investment. A major opportunity for Europe, which is precisely seeking to secure its supplies of critical minerals while reducing its dependence on China.
“By relying on trusted partners, we can transform our shared values into economic opportunities,” explains Evan Solomon, Canada’s Minister of Artificial Intelligence and Digital Innovation.
Thierry Warin also reminds us that “Canada is one of the few countries with free trade agreements covering 53% of global GDP,” starting with CETA, signed between Brussels and Ottawa, and provisionally in effect since 2017.
DOLO Conseil: Unlocking France–Canada Potential
DOLO Conseil supports companies, investors, and institutions seeking to build strong economic bridges between France and Canada.
With our deep knowledge of both ecosystems, we operate across the following areas:
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Setting up French businesses in Canada (and vice versa)
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Structuring strategic and industrial partnerships
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Commercial development on both markets
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Sourcing investment opportunities and M&A targets
Looking to enter the Canadian market or invest in France?
Call us. We’ll open the right doors—at the right time.
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