Ottawa's business community is facing a wake-up call as a new report from the Canadian Chamber of Commerce reveals that Canada's progress on trade diversification is uneven — with a handful of cities like Toronto and Calgary pulling ahead, while others struggle to reduce their dependence on American markets.
A Tale of Two Trade Strategies
The report, released this week, found that a small group of Canadian cities drove the bulk of the country's trade diversification gains in 2025. Toronto and Calgary emerged as standouts, having made measurable strides in growing export relationships outside the United States — a shift that economists say is increasingly critical given ongoing tariff tensions and political uncertainty south of the border.
For Ottawa, the findings carry real weight. The National Capital Region's economy is heavily tied to the federal government, but its growing tech sector — anchored in Kanata North — and its proximity to major trade corridors make diversification both an opportunity and a pressing concern.
Why This Matters for the Capital Region
Ottawa may not be a traditional export hub, but the city's economic health is deeply connected to national trade policy. When federal revenues are squeezed by trade disruptions, it ripples directly into public sector employment, contracts, and capital spending — all of which fuel the local economy.
Beyond government, Ottawa's tech and professional services sectors have long had the potential to export their expertise globally. The report's findings suggest that cities which proactively build international trade relationships now will be better positioned if U.S.-Canada relations remain strained.
Local business groups have been sounding the alarm for months. The Ottawa Board of Trade has encouraged regional businesses to explore markets in the European Union, Asia-Pacific, and the United Kingdom — markets that Canada has formal trade agreements with through CETA and the CPTPP.
The Bigger Picture
Canada's over-reliance on the United States — which absorbs roughly 75 per cent of Canadian exports — has long been flagged as an economic vulnerability. The current tariff environment under U.S. trade policy has accelerated conversations that Canadian policymakers and business leaders had been putting off for decades.
The Chamber of Commerce report underscores that diversification isn't just a federal policy goal — it requires city-level action. That means local economic development agencies, chambers of commerce, and municipal governments all have a role to play in connecting businesses to international buyers and investors.
What Ottawa Can Do
Experts suggest Ottawa businesses looking to diversify should:
- Tap into federal trade commissioner services, which help Canadian companies find international partners
- Explore EU and UK markets through CETA, which eliminates most tariffs on Canadian goods and services
- Leverage the tech sector's global reach, since software and professional services face fewer trade barriers than physical goods
- Engage with the Ottawa Board of Trade's international trade programming
The report serves as both a progress report and a roadmap. Cities that act now — building export capacity and international relationships — will be far more resilient if U.S. trade relations continue to deteriorate.
For Ottawa, the message is clear: the time to diversify is before a crisis, not during one.
Source: Global News Ottawa / Canadian Chamber of Commerce report on Canadian trade diversification, 2025.
