Stuck in Neutral: Canada’s Engagement in Regional and Global Supply Chains

Stuck in Neutral: Canada’s Engagement in Regional and Global Supply Chains takes an original look at how Canadian companies fit into other regions’ supply chains and how those regions fit into Canadian supply chains. Instead of conventional trade analysis that tends to assume two countries trade in final goods, this report examines Canada’s trade with other regions through the eyes of the buyer’s supply chain. This approach better aligns with today’s highly integrated regional and global production. The results show a scaling back of Canada’s involvement in global and regional supply chains in recent years, after a dramatic increase over the 1990s. However, stripping away Canada’s trade with its North American partners shows that Canadian companies have become more integrated—especially in recent years—in other regions’ supply chains. But integrated trade with those regions remains modest and represents important untapped potential. Businesses and governments need to take action.

This report was produced by the Conference Board’s International Trade and Investment Centre that examines the implications of global economic dynamics for Canadian business and governments leaders. More on the Centre’s research, events, and membership