Trade tensions with the United States, market diversification, closer ties with the European Union: Canada is experiencing an unprecedented period of openness, from which French companies can benefit. In this article, Frédéric Lhotellier, Director of Adexia, the Canadian member of Globallians, outlines the Canadian market, its growth sectors, real-life examples of French companies operating there, and the key considerations to bear in mind before entering the market. Here are the key points from his presentation.

Canada, a middle power with a focus on Europe

A very large country with a low population density

Canada is one of what are now known as ‘middle powers’. Here are a few key points:

The low population density has a significant impact on how the market is accessed. The vast coastline also opens up a particularly dynamic blue economy market: shipbuilding, water sports and the exploitation of marine resources.

Abundant natural resources

Much of Canada’s wealth has been built on the exploitation of its natural resources. The country is the world’s leading producer of potash, and the world’s second-largest producer of hydroelectricity and uranium. It holds 20 per cent of the world’s freshwater reserves – an increasingly strategic asset – and the world’s third-largest oil reserves.

In Quebec, 99 per cent of electricity comes from renewable sources, mainly hydroelectric power. As it is very affordable, this encourages the establishment of energy-intensive industries such as aluminium smelters and steelworks.

A country of immigration

Canada is a cosmopolitan country, built on immigration, even though some immigration policies have been tightened, both at federal level and in certain provinces, including Quebec. In Toronto, half the population was born abroad. The city is the fourth most populous in North America, behind Mexico City, New York and Los Angeles.

A strategic gateway to North America

Canada is the only G7 country to have both a North American free trade agreement (United States, Mexico, Canada) – which is currently being renegotiated – and an agreement with the European Union, CETA. It is therefore a strategic platform for European businesses wishing to test the North American market. Since CETA came into force, French exports to Canada have risen by 45 per cent, despite the agreement’s critics in both France and Canada.

Tensions with the United States: diversification is the order of the day

An unpredictable price war

The United States is by far Canada’s largest trading partner and supplier. Economic and political relations between the two countries in recent months are reshaping the way Canada develops its international relations:

• 24 July 2026: a general 10 per cent customs duty comes into force on Canadian goods entering the United States, excluding goods covered by the Canada–United States–Mexico Agreement. The impact is largely symbolic.
• 21 August 2026: breakdown of negotiations on the renegotiation of the North American Free Trade Agreement (formerly NAFTA, now known as ACEUM).
• 22 August 2026: The United States imposes 50 per cent tariffs on approximately $20 billion worth of Canadian exports in targeted categories. Canada retaliates ‘dollar for dollar’ on 700 lines of US products, including steel, aluminium, furniture, household appliances and agri-food products.
• 15–29 September 2026: changes to the tariff lines targeted by the United States.
• Récemment: menace d’une hausse de 50 % sur certains produits automobiles canadiens, dans le contexte des élections de mi-mandat américaines.

Most of these products were normally covered by the free trade agreement, which is therefore no longer being upheld. These constant changes make it impossible for Canadian and US companies to plan with any confidence and are creating significant uncertainty in supply chains. Alongside China, Canada is one of the few countries to retaliate almost systematically against US tariff increases.

Europe, a key partner

Highly dependent on its relationship with the United States, Canada must find new markets for both imports and exports. Diversification is the watchword at all levels of government, and the free trade agreement makes Europe a priority destination. Political visits are on the increase:

• June 2026: Mark Carney visits France and Ireland and attends the G7 summit in Évian, where he delivers his speech on middle powers.
• September 2026: another visit to France and the United Kingdom, and a speech to the European Parliament, in which a proposed associate membership status within the European Union was discussed.
• 29 and 30 October 2026: Canada–European Union summit in Montreal, with Mark Carney and Ursula von der Leyen, focusing on trade, investment, energy, critical minerals, technology and defence.

Unprecedented momentum

For Frédéric Lhotellier, this commitment goes beyond political rhetoric: the move towards new markets is evident in international business ecosystems. In his 20 years of supporting French companies in Canada, he has rarely seen such a warm welcome, nor deals being finalised and transformed as quickly as they are today.

Growth sectors in Canada

The most dynamic sectors are, above all, those that governments support through substantial subsidies, investment and major projects. As soon as tensions with the United States arose, Canada launched a programme of major projects of national interest, mainly in infrastructure.

Energy, critical minerals and the energy transition

Renewable energy is booming, with a shift in the renewable energy mix – which has traditionally been heavily reliant on hydroelectric power – towards offshore wind, solar and nuclear projects.

À lire aussi sur le blog d’Adexia :Secteur de l’énergie au Canada

Infrastructure, engineering and construction

Major projects give rise to large-scale industrial, infrastructure and transport works spanning generations. For example, the Alto high-speed rail project, which is set to link the cities of Québec, Montréal, Ottawa and Toronto, is currently in the engineering design phase. The French companies Systra, SNCF Voyageur and Keolis are part of the Cadence consortium, which was awarded the contract for the Alto project.

Also worth reading on the Adexia blog: The railway sector in Canada

Food and agri-food industry

The agricultural production and agri-food processing sector is also very significant. The decline in the available workforce, linked to migration policies, is driving investment in equipment. Livestock farms are also very large, with some operations being 5 to 10 times larger than those in Europe.

Information Technology and Artificial Intelligence

Canada is historically and strategically one of the world’s leaders in artificial intelligence and digital technologies. It stands out in particular for its pool of recognised talent (150,000 jobs in AI, 800,000 in the digital sector), its financial appeal and a dynamic ecosystem, as well as a pioneering ethical framework (Canada is recognised for its leadership in the ethical governance of AI).

Healthcare, manufacturing and defence

Healthcare, medical devices, manufacturing and automation remain traditional growth sectors. The defence market is also opening up to European players, and vice versa: Canada is eligible for the European SAFE programme, which uses public funds to finance the procurement of defence solutions, and its suppliers can participate in the programme. The country is also exploring the use of the European Galileo system as a geolocation solution.

Ways forward for French businesses

Quebec has always been a favoured destination for French companies, and the current situation further enhances its appeal:

• the diversification of Canadian markets, the primary driver of new opportunities;
• the strengthening of EU-Canada relations, and perhaps this future associate member status, the details of which have yet to be clarified, but which could facilitate market access, the harmonisation of rules or the free movement of people;
• the ‘piggyback’ approach: leveraging, as a first client or reference, a major French group with which we already work and which has a presence in Canada, where French investment holdings are already very substantial.

Like many countries, Canada seeks to promote and encourage the purchase of Canadian products, solutions and services in certain public procurement markets or those of significant strategic importance.

How can I enter the Canadian market?

Preparing and planning your approach

The entry strategies are traditional: direct export, local partners (distributors, agents, importers), setting up a subsidiary or acquisition. Whichever option is chosen, thorough preparation is essential. Canada is not a European market: regulatory requirements, business culture and the geographical areas to prioritise must be fully understood in advance to avoid obstacles.

À lire aussi sur le blog d’Adexia :Créer une filiale au Canada : guide complet pour les entreprises étrangères

Four common misconceptions about Canada

1. « It is an extension of the United States. » False: it is a fully-fledged federal state, whose provinces have extensive powers (health, economic development, transport). The regulations, key players and major retail groups differ: apart from Walmart and Costco, the major food retail chains are not the same as in the United States. Canada should be approached as a number of separate markets.
2. « It’s too small a market. » With a population of 41 million, strong purchasing power, creditworthy customers and cutting-edge industries, it is a highly attractive destination for SMEs and mid-market companies looking to export beyond Europe.
3. “In Quebec, speaking French is enough.” The language makes initial contact easier, but the market remains Anglo-Saxon. 20 per cent of Quebecers use English as their everyday language, many businesses operate in English, and bilingualism rules apply, particularly regarding labelling. Brochures, websites and product ranges must be available in English.
4. “Canada is Quebec.” Quebec accounts for only 20 per cent of the Canadian economy; Ontario accounts for almost twice that. Apart from French companies, European firms (Dutch, German, British, Swiss and Spanish) focus primarily on Ontario.

Also worth reading on the Adexia blog: The Canadian market in 2026: common misconceptions, opportunities and pitfalls to avoid

The keys to success in Canada

Points to beware of

• La fausse proximité culturelle: malgré le français, le Québec reste un environnement nord-américain.
• Le fédéralisme: certaines normes sont nationales, comme les normes sanitaires de l’Agence canadienne d’inspection des aliments, d’autres propres à chaque province.
• Un marché de réseau: crédibilité et confiance se construisent, avec plusieurs interlocuteurs dans une même structure et une présence régulière, directe ou via un partenaire.
• Les distances: fuseaux horaires, logistique et SAV sont à anticiper à l’échelle d’un pays-continent.

Key success factors

1. Proceed province by province, usually starting with Ontario or Quebec. Exception: certain sectors, such as the shipbuilding industry, which is also highly developed in the Maritime Provinces and on the Pacific coast.
2. Adapting one’s positioning. One company was highlighting the water and energy savings offered by its solution. However, in Canada, water is free and energy costs far less than in Europe: other selling points therefore had to be identified.
3. Maintain a presence on the ground. ‘One-off’ deals don’t work: you need to keep coming back, nurture your networks and build trust over the long term.
4. Be prepared for the long term. Allow 12 months at best – often 18 to 36 months – between the initial steps and the first orders, and expect a payback period of 2 to 3 years at best. Hence the value of government support schemes, such as business development insurance.
5. Surround yourself with local experts. In North America, your experts are your solicitor and your accountant. Commercial laws differ, and a contract does not carry the same weight as it does in Europe: advice from a French consultant with no real expertise in Canada is not enough. Also worth reading on the Adexia blog: Time-sharing business development

Adexia: your partner in Canada

Founded 20 years ago by Frédéric Lhotellier, Adexia is the Canadian member of Globallians. From its offices in Montreal and Toronto, it supports SMEs, mid-market companies, large corporations, organisations and clusters with their strategic and commercial projects in Canada, focusing on four main service areas:

• Business development: sector-specific, market access and strategic analyses; initial trade missions and long-term support.
• Setting up a subsidiary: administrative back-office services.
• Human resources: recruitment, staff and payroll management, umbrella employment schemes and hosting of staff, including VIE participants.
• External growth: acquisition or takeover of a business.