Canada’s push to attract foreign investment is being shaped by a central reality: many international companies still see access to the U.S. market through the U.S.-Mexico-Canada Agreement as the country’s biggest advantage. Prime Minister Mark Carney has sought to reduce Canada’s reliance on the United States by promoting trade and investment links with partners in Asia, Europe, Latin America and the Middle East, but officials and business leaders say the lure of tariff-free access to the U.S. remains the main selling point for many investors.
Since taking office in April 2025, Carney’s government has launched multiple trade missions to Asia and is planning a larger mission to Japan later this month. The administration has also signed new trade and investment agreements with countries including Indonesia and the United Arab Emirates, while pursuing deeper economic ties with the Philippines, Thailand, India, ASEAN and Mercosur. Officials say Canada wants to expand non-U.S. trade and investment, which reached C$213.8 billion last year, but they also acknowledge that North American market access is often what draws global firms to Canada in the first place.
That dynamic is especially clear in the automotive sector. Japanese manufacturers Toyota and Honda, which together account for more than 75% of vehicles made in Canada, have repeatedly lobbied Ottawa to preserve the USMCA. Lobbying records show Toyota raised the trade pact in most of its government contacts this year, while Honda frequently highlighted the need to protect North America’s integrated auto supply chain. Swedish truckmaker Volvo Group has also urged Canada to keep the agreement unchanged, and South Korea’s Kia has warned that altering it could raise costs and threaten jobs.
The USMCA is under review ahead of a July 1 deadline, with the three countries deciding whether to extend it for 16 years or shift to annual reviews. The pact allows duty-free trade for qualifying goods produced in North America, making it especially important for industries with cross-border supply chains. While U.S. talks with Mexico have begun, the timing of formal negotiations with Canada remains unclear.
Canada’s trade minister says the government’s message to investors includes both the country’s other trade links and its preferential access to the U.S. market. But experts and business leaders note that large investors from Asia and Europe also consider Canada’s role within the broader North American economy. The United States remains Canada’s dominant export destination, taking nearly 70% of exports last year, including crude oil, motor vehicles, parts and machinery.
Canadian officials believe they can more than double non-U.S. trade over the next decade if current outreach efforts succeed. Yet for now, Canada’s ability to attract foreign capital still depends heavily on the same U.S. market access that Carney hopes to make the country less reliant on.
