Indigenous Export Development: Expanding Trade Beyond Turtle Island

Trade and commerce have been a fundamental driver of human interaction since the dawn of humanity. Not only does trade help facilitate mutually beneficial economic growth, but it also helps foster stronger connections between communities who otherwise may not have interacted with one another.

Recently, the Indigenous Chamber of Commerce (ICC) had the opportunity to meet with 18 delegates from European Union member states to explore the potential for new trade relationships. The meeting comes at a time fraught with uncertainty in the global trade environment and highlighted the importance of building new connections to foster economic resilience.

Manitoba’s Changing Export Landscape

As technological progress continues to be made and the world continues its trend toward globalization, exports are expected to play an increasingly important role in most economies. In 2014, Manitoba’s exports amounted to around $15.5 billion. By 2024, exports sat at around $20.5 billion (See Figure 1), accounting for a more than 30% increase within the ten-year period.

Figure 1: Manitoba Yearly Exports and % Change Year over Year, 2015-2024
Chart prepared by ICC Staff. Data from Government of Manitoba.

In recent years, the overwhelming majority, almost three-fourth’s, of the province’s exports have gone south of the border to the United States. The recent trade dispute between the United States and Canada has called this once stable and mutually beneficial relationship into question, with many businesses and communities concerned about their future. Of note, almost 40 percent of annual exports to the United States from Manitoba are in food production and related industries, important sectors for Indigenous communities.

The Push for Indigenous Export Development

Amidst the uncertainty, leaders from both the business sector and government have stressed the importance of developing a more rigorous export development policy for Indigenous communities. Trade is not just a crucial part of the Indigenous economy but also represents an opportunity for growth as new markets can consume a larger sum of Indigenous goods and services. Reducing trade with the United States is expected by most analysts to have profound implications for the Canadian economy, especially Indigenous-owned businesses.

The Canadian market, while an open economy, remains small. Expanding trade networks is crucial not just for Indigenous communities, but for the Canadian economy more broadly to build resiliency and diversify. There are, however, certain complications that will make export substitution rather difficult, especially for Indigenous-owned businesses.

Challenges in Market Diversification

First, Canada’s relative geographic isolation, while beneficial for security purposes, limits our potential for outsourcing and makes it difficult to find alternative trading partners. Canada’s vast geography, moreover, can add significant shipping costs into the equation –– not to mention the plethora of interprovincial trade barriers that further complicate matters.

Second, Indigenous-owned businesses have struggled to develop economies of scale. Indigenous-owned businesses are fragmented and dispersed throughout the country, often operating in isolated communities. This makes competing in the global market, against the likes of large firms from places in Europe, the United States, and East Asia particularly challenging.

These challenges, as such, highlight the need for a more rigorous approach to export development in Indigenous communities. Such an approach must be multilateral in nature, including all levels of government and public-private partnerships; it must first identify and address the local challenges Indigenous-owned businesses face and assist them in competing in the global market.

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