Canada Must Rethink Trade Strategy Amidst AI Revolution

Canada's trade strategy is due for an overhaul in light of recent advances in AI capabilities. The country's economy is relatively small, and its living standards have historically been boosted by free trade with the US.

The relentless trade shocks imposed by US President Donald Trump starting in 2025 challenge Canada's long-held assumptions about predictable market access. To adapt, Canada needs to expand trade across new markets and types of trade.

Canadian discussions on trade and trade diversification have traditionally focused on physical products crossing borders. However, advances in AI capabilities are creating entirely new tradables, including continuous flows of data, digitally delivered intelligence, AI models, and products that incorporate AI capabilities.