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Cultivate Growth, Not Dependence: Canada’s Moment to Lead in Agri-Food

By Michael Mikulak, executive director, Food & Beverage Manitoba

To say the last few weeks have been chaotic and damaging to the food and beverage sector is an understatement.

Despite the 30-day reprieve on tariffs that would have resulted in the declaration of economic warfare on Canada, the Trump administration has revealed its true colours. Where once we could trust our US allies to act in our collective best interest, or at the very least, to not actively seek to harm Canadian interests, it has become clear that this administration is truly America First. 

What does this mean for Canadian businesses? What vulnerabilities has it revealed and how should policymakers, business leaders, and the public think about this alarming new turn in American policy?

When considering investment, it is common advice that a diversified, balanced portfolio is the best way to hedge against risk and volatility. Individual stocks, sectors, and companies can fall and rise and if you choose the wrong ones, your investments can fall as well. 

Canada has what the world wants and needs. We possess critical minerals, agricultural products, and an educated and capable workforce. And yet, here we stand, on the precipice of economic chaos due to the musings of one man and his administration.

Make no mistake, we are not in the clear. Canada exports nearly 80% of its goods to one country, and that has proven to be a fatal vulnerability, one that we must seek to resolve if we hope to avoid future consequences.

Recent setbacks in the United States regarding DEI, ESG, and environmental regulations have prompted some to consider retracting these measures in an attempt to achieve perceived greater equality. In the short term, this may appear rational. Why burden companies already facing a large productivity gap? 

Risk management is a fundamental aspect of all businesses. As Canada seeks to diversify its exports, it’s important to consider how regulations in other jurisdictions will limit or enable trade. Take canola seed and oil, for instance, much of which goes into the US supply chain. The EU would happily take our canola, but EU regulations around ESG make it difficult to access these markets. 

With the US pulling back supports and investments into renewable energy and environmental regulations, it will be tempting for Canadian policymakers and businesses to do the same. We need to maintain that competitive edge, right?

While we do that, China will continue to lead the world in EVs, solar power, fusion reactors, and increasingly, AI. Last week’s DeepSeek AI market crash shows us that no country can believe that any technological moat is insurmountable. At exactly the moment when countries need to be doubling down on investments that will support economic growth and decarbonization, we are witnessing a resurgence of some of the dirtiest and inefficient forms of energy generation (coal). 

Our trading relationship with the US has a long history of mutual benefit, collaboration, and has resulted in incredible economic growth on both sides of the border. Despite its significance, there is an often-overlooked reason for the substantial 80% of our exports directed to the United States: its ease and convenience. This is also the case with pushing back against DEI, ESG, and regulations that will support the energy transition. 

Fear and isolationism are causing the United States to regress and reject the progress made over the past two decades. The question is, do we want to follow that path? Join us at Cultivate on March 13, 2025 in Winnipeg, Manitoba to explore how Manitoba and Canada can emerge as a global leader in sustainable agri-food products.

The global demand for our food products presents an opportunity to explore new markets rather than resorting to a race to the bottom.

California, the EU, and several other markets around the world understand that the false dichotomy between nature and economy cannot continue forever. We must lean into our many strengths and choose the path of hope, optimism, and innovation, and reject the zero-sum politics of the Trump administration. If Trump has given us anything, it is the drive that we are not the 51st state and should not act like one.

foodbeveragemb.ca/cultivate