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Economic Viewpoint

Which Industries Will Benefit from Increased Trade with Europe?

September 4, 2025
Florence Jean-Jacobs
Principal Economist

Highlights

  • The geopolitical landscape has shifted, and Canada urgently needs to diversify its trade beyond the United States. Europe is emerging as a key trade partner. This new dynamic could push Canadian companies to be more innovative and competitive as they find their place on the European market. It may also support their energy transition.
  • These new trade relationships are expected to last. But Canada’s exporters and investors should be aware that the process will take several years.
  • The Canada–European Union Comprehensive Economic and Trade Agreement (CETA) is currently underutilized, and companies have much to gain from greater familiarity with its provisions. For example, CETA’s government procurement provisions give Canadian companies privileged access to public calls for tenders, from local to national levels, where they are well placed to succeed.
  • There are avenues for growth in several sectors, and businesses from Quebec and Canada could have a distinct competitive edge. We see opportunities in renewable energy and clean technology, professional services and digital technology, defence, advanced manufacturing, critical minerals and metals, health and pharmaceuticals, and agrifood (table A).
NOTE TO READERS: The letters k, M and B are used in texts, graphs and tables to refer to thousands, millions and billions respectively. IMPORTANT: This document is based on public information and may under no circumstances be used or construed as a commitment by Desjardins Group. While the information provided has been determined on the basis of data obtained from sources that are deemed to be reliable, Desjardins Group in no way warrants that the information is accurate or complete. The document is provided solely for information purposes and does not constitute an offer or solicitation for purchase or sale. Desjardins Group takes no responsibility for the consequences of any decision whatsoever made on the basis of the data contained herein and does not hereby undertake to provide any advice, notably in the area of investment services. Data on prices and margins is provided for information purposes and may be modified at any time based on such factors as market conditions. The past performances and projections expressed herein are no guarantee of future performance. Unless otherwise indicated, the opinions and forecasts contained herein are those of the document’s authors and do not represent the opinions of any other person or the official position of Desjardins Group.