As political and economic shifts take shape in the United States, Canadian agriculture leaders are urging a renewed focus on trade diversification to reduce exposure to U.S. volatility.
Dr. Al Mussell, Research Lead at Agri-Food Economic Systems and Senior Research Fellow at the Canadian Agri-Food Policy Institute, highlights that recent U.S. policy changes — including tax cuts, reduced government spending, and potential changes to food inspection systems — could have serious implications for Canadian exports, particularly in the pork sector.
“Canada needs to find friends,” says Dr. Mussell. “We’re not going to stop trading with the United States — that’s not realistic. But it’s no longer the reliable partner it once was, and we need to explore alternatives.”
The call for diversification includes not only expanded trade with third countries, but also increased interprovincial trade within Canada. Products currently moving between Canada and the U.S. could be redirected across provinces to create new domestic opportunities and reduce vulnerability to international tensions.
Another major concern is the potential weakening of U.S. food inspection systems. Reports indicate the U.S. Food and Drug Administration may shift food safety oversight — including meat inspection — to state or even municipal authorities.
“If inspection responsibilities fall to under-resourced local governments, it could damage the credibility of U.S. food exports,” Mussell warns. “Other countries may become hesitant to import American products, and in retaliation, the U.S. might restrict imports from Canada. This type of tit-for-tat disrupts the entire system.”
Historically, Canada and the U.S. have treated each other’s food safety standards as equivalent. A breakdown in that trust could create significant trade friction, particularly for sectors like pork that rely on integrated North American systems.
Despite these concerns, Mussell points to signs of stability: newly elected Canadian Prime Minister Carney is said to have a strong working relationship with U.S. President Trump. This rapport could help maintain some continuity in trade relations. Additionally, the U.S. continues to run a food and agriculture trade deficit with Canada, indicating that Canadian pork and other ag products remain essential to U.S. supply chains.
“At the end of the day, the U.S. needs our food and agriculture products,” says Mussell. “That’s a key point of leverage for Canadian producers.”
As the situation evolves, Canadian pork producers are being urged to stay alert, explore new markets, and support policy changes that promote domestic and international diversification.
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