TORONTO -- Canadian exporters have hit a snag after years of free trade agreements, and a new report from CIBC suggests businesses should look outside traditional export partners for further growth.
CIBC World Market senior economist Benjamin Tal says despite nine free trade agreements, the volume of Canadian exports has receded back to about the same level it was a decade ago.
That's because exports to countries outside the U.S. have hardly increased over the past four years -- and in recent quarters, volume has actually dropped.
Tal says part of the reason is that Canadian exporters have been squarely focused on China and the United States for growth.
While the volume of imports has increased by 45 per cent since 2002, the volume of exports has hardly changed over the same time, he says.
The stagnant growth can't solely be blamed on the strength of the loonie, but also other factors, including the struggling U.S. economy and heightened competition from emerging markets.
Tal says Canadian companies need to look further beyond the United States and China, two countries which promise only slow and unreliable economic growth in the near term.
"The relative success of Canadian exporters in China should be seen as an indication that Canada can and should compete in other emerging markets," Tal wrote in the report.
"That should encourage them to broaden their horizons into other growth markets in the decade ahead," he added.
