Project

Defying Gravity: Diversifying Canada’s Trade

About the Defying Gravity Project ​

How can Canada defy the gravitational pull of the U.S. to diversify its trade and strengthen its sovereignty? ​

Diversifying Canada’s trade will be one of the most significant policy challenges for Canada over the coming decade. The extent to which we can successfully diversify will determine the trajectory of our country’s economic growth, the resilience of our sovereignty and the prosperity of our local communities.   

In economics, the gravity model predicts that countries trade more with large, nearby economies. The gravitational pull of the U.S. – the world’s largest economy and Canada’s neighbour – is strong, which means government policy tools that help Canadian businesses defy gravity and expand into new markets will be increasingly important.  

Those tools need to be carefully designed and grounded in rigorous analysis and evidence. Our research project aims to provide that analysis and evidence through collaborations with leading experts, and a series of research papers, commentaries, data dashboards and events.

Featured Research

Defying Gravity: The Compelling but Challenging Case for Diversifying Canada’s Trade

Featured Research

Defying Gravity: The Compelling but Challenging Case for Diversifying Canada’s Trade

Amid U.S. President Donald Trump’s on-again-off-again trade war, trade diversification has been the talk of the town. But for a country like Canada, diversifying trade will be no easy feat. It also shouldn’t be the goal in and of itself. This paper explores the ultimate objectives of trade diversification; it presents a diversification plan, identifies what stands in the way of implementation, and proposes a pathway to develop policy solutions to overcome obstacles.

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Publications

Former research program

International Trade and Global Commerce

International Trade and Global Commerce

This recently completed initiative examined how changes in global trade and investment, technology, and economic and geopolitical power are affecting Canada, and what this means for policy. The objective was to contribute to the development of a forward-looking, medium-term policy agenda that will enable Canada to engage more effectively in the global economy. The program […]

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Published by Policy Options

Project Team

Advisory Council

Laurent Carbonneau Laurent Carbonneau Vice President of Policy and Advocacy, Council of Canadian Innovators View Laurent's Bio
Matthew Foss Matthew Foss Vice-President, Research and Public Policy, Canadian Council for Indigenous Business View Matthew's Bio
Patricia Goff Patricia Goff Professor, Balsillie School of International Affairs, Wilfrid Laurier University View Patricia's Bio
Ruhee Ismail-Teja Ruhee Ismail-Teja Vice-President, Policy and External Affairs, Calgary Chamber of Commerce View Ruhee's Bio
Meredith Lilly Meredith Lilly Professor and Simon Reisman Chair in International Economic Policy, Carleton University’s Norman Paterson School of International Affairs View Meredith's Bio
Stephen Tapp Stephen Tapp Chief Executive Officer and Chief Economist, Centre for the Study of Living Standards View Stephen's Bio
Ari Van Assche Ari Van Assche Professor, Department of International Business, HEC Montreal View Ari's Bio

Specialist Contributors

Jacob Greenspon Jacob Greenspon Doctoral Candidate in Economics, Oxford University
Glen Hodgson Glen Hodgson Chief economist, Momentus Global

Funders

This project was made possible in part thanks to support from the Clean Economy Fund, Export Development Canada and the Max Bell Foundation. The IRPP is an independent think tank and retains control over the scope, methodology, conclusions and recommendations of our work.

Specialist Contributors

Jacob Greenspon

(Place-based and regional implications)

Glen Hodgson

(Investment)