The Biggest Challenges Facing Exporters in Canada Right Now

Importing and exporting is a tricky business, even during the best of times. You are forced to rely on others and nebulous situations, making it complicated to figure out the landscape. It’s especially hard now, as the COVID-19 pandemic has completely disrupted the industry. So how are Canadian exporters managing? What are some of their biggest challenges and concerns?

The COVID-19 Pandemic

Governments around the world have made great efforts to ensure that the movement of goods can still flow during the pandemic. While many have been successful in doing so, COVID-19 is clearly still an issue. How it will affect your business mainly depends on what you export and where to. It is crucial to stay informed. Regularly check the regulations of the countries you are exporting to and make sure to comply with any new policies. You can also try to figure out if there are more favorable destinations to do business with right now to make things slightly easier for your company.

Trading With the US

Most of Canada’s goods go to its largest trading partner, the US. As the pandemic hit the West hard in the second quarter of 2020, Canadian exports fell by an estimate of 25%. However, it was able to rebound in June by nearly 22%. Why? Because of trade with the US. At first, many American importers were panic buying to stock up on supplies, fearing that the CAN-AM border would close entirely. However, that has not been the case, and the state of trade has remained mainly stable.

Despite concerns, the US presidential election is unlikely to make a big difference in terms of CAN-AM business. The USMCA has already been signed, and president-elect Joe Biden has not showcased any objections.  The Agreement has the power to affect several markets like dairy, automaking, and patent law, and there’s not much change from the previous NAFTA agreement. Moreover, with the US backing off on mooted aluminum tariffs, the American landscape looks more welcoming to Canadian exporters than it has in a long time.

Overseas Exports

One of the biggest challenges of overseas exports is working with the right shipping companies. With increasing cases of merchant mariners being stranded in ports, the shipping industry has not been the most reliable lately. As an exporter, you need to work with a reliable shipping company that can transport your goods to its destination in a timely and safe manner. Make sure you do thorough research on companies before working with them and have a backup plan in case your goods are not transported in time or get damaged. 

Work With Export Portal

At Export Portal, we help all SMEs identify the best shipping companies to work with, figure out the best pricing structures, and more. For more information, make sure to check out our site!