A new RBC report says the Canadian agriculture industry needs to expand its international exports to hedge against U-S tariffs and hold its own against global competitors.
The report says amid the looming tariff threat, Canada's agriculture and agri-food sector is vulnerable as more than 60 per cent of its exports go to the U-S.
It says Canada has become too reliant on the U-S as over the years it's become a dominant supplier for American grocery stores, even though the relationship benefits both countries.
For instance, about 96 per cent of Canada's canola oil went to the U-S in 2024, while Canada also supplies the vast majority of potash for American farmers.
It says that on the global stage, Canada is falling behind when it comes to agri-food exports, meaning there are opportunities for growth outside of the U-S.
With the right investments, the report says Canada can increase its global share of agri-food exports, adding 44-billion dollars in export value for the sector by 2035.