Export development Canada
  • Français
  • MyEDC Account

    • Manage MyEDC Profile
    • MyEDC dashboard
    Log out of MyEDC

    Log in or sign up for…

    • Knowledge and advisory (MyEDC)
    • Credit Insurance
    • Portfolio Credit Insurance
    • Invoices and statements
    • Select Credit Insurance
    • Other EDC accounts
    • Contract Insurance & Bonding (EDC Direct)
    • Trade Partnership Insurance
    • Financial Institutions Risk Manager
    • Service providers
  • Contact us
  • 

    About exporting

    Seize new opportunities to grow your customer base, increase revenue and generate more profits.

    Welcome to EDC

    • Getting started
    • Diversify to new markets

    Trade expertise for

    • Cleantech
    • Black entrepreneurs
    • Indigenous Business
    • Women in trade
  • 

    Our solutions

    Manage the risks of doing business abroad and access the working capital and financing you need to grow your business.

    Managing Risks

    • EDC Trade Impact Program
    • Credit Insurance
    • Select Credit Insurance
    • Portfolio Credit Insurance
    • Performance Security Insurance

    Securing Financing

    • Investments
    • Investment Matching Program
    • Inclusive Trade Investments Program
    • Direct Lending
    • Buyer Financing
    • Structured and Project Finance

    Growing Working Capital

    • Working Capital Guarantees
    • Export Guarantee Program
    • Account Performance Security Guarantee
    • Foreign Exchange Facility Guarantee
    • Trade Expansion Lending Program
    • Surety Bonds

    Knowledge & Advisory

    • MyEDC
    • Get Export Help & Trade Advice
    • Search International Companies
    • Find Qualified Service Providers
    • Learn with EDC | FITT Lite Learning Series
    • Connect to Global Opportunities
  • 

    Country and economic info

    Research international markets and get expert insights into the trends driving global trade.

    Search by Country or Market

    • Search all countries and markets
    • Indo-Pacific market intelligence
    • Europe market intelligence
    • U.S. market intelligence

    Expert analysis and insights

    • EDC Economics: Connecting Canada to the world
    • Global Economic Outlook
  • 

    TradeInsights

    Explore our collection of learning resources designed to help you succeed in international markets.

    Browse Insights

    • Advice and insights
    • Webinars and events
    • Podcasts
    • Subscribe to receive EDC resources straight to your inbox
  • 

    About us

    Learn about Export Development Canada (EDC), a Crown corporation dedicated to helping Canadian companies of all sizes succeed on the world stage.

    About our company

    • Corporate information
    • Management and governance
    • Transparency and Disclosure
    • Corporate reports
    • Newsroom
    • File a complaint

    Environmental, Social and Governance

    • ESG at EDC
    • Environment
    • Social
    • ESG Governance

    Working with us

    • Careers
    • Student programs
    • Procurement
  • Log in

    • Manage MyEDC Profile
    • MyEDC dashboard
    • Log out of MyEDC

    Log in or sign up for…

    • Knowledge and advisory (MyEDC)

    Credit Insurance

    • Portfolio Credit Insurance
    • Invoices and statements
    • Select Credit Insurance

    Other EDC accounts

    • Contract Insurance & Bonding (EDC Direct)
    • Trade Partnership Insurance
    • Financial Institutions Risk Manager
    • Service providers
  • Français
Cyclist rides high over a hill on a Devinci mountain bike.
  1. TradeInsights
  2. Article

Diversify your business through free trade agreements

July 21, 2023 Identify Target Markets Part 3 of 3 in series

Author details

Karen Turner

Senior international trade editor,

View all authors

When Félix Gauthier bought a Quebec-based bike company 35 years ago, he couldn’t have imagined his Devinci brand would become a leader in the international cycling industry.

From World Cup-winning mountain bikes and sleek hybrids to urban cruisers and powerful e-bikes, Devinci’s “Made in Canada” fleet is now shipped across the globe.

Known for its innovative designs and top-quality construction—the aluminum bike frames are all welded by hand—Devinci is also part of a public ride-sharing program with more than 125,000 bikes in the world’s largest cities, including Barcelona, Dubai, Toronto, Montreal, and Rio de Janeiro. 

But growing from a small company in Chicoutimi, QC, into an international sensation didn’t happen overnight. Gauthier knew that exporting was essential to diversify, increase and sustain growth and expand his client base.

Maude Gauthier, financial director of Devinci Cycles


His daughter, Maude Gauthier, who’s Devinci’s financial director, says Canada’s free trade agreements (FTAs) were a key incentive when choosing which global markets to enter.

Canada currently has 15 FTAs with 51 countries—there are many more are in the works—worldwide. That translates to about 1.5 billion potential consumers for your goods or services and a long list of other benefits, including:

  • little to no tariffs; 
  • preferential access to new markets;
  • reduced delays at customs; 
  • increased business opportunities; and 
  • getting to market faster—and cheaper—than a competitor from a country without an FTA. 

“Free trade agreements definitely give us an edge,” says Maude, referring to the reduced duties—known as preferential tariffs—on their bikes when exporting into countries where Canada has an FTA.

You should also check out

A person sitting on a table looking at a computer
Article
Exporting to Mexico and Latin America with free trade

Learn everything you need to know about exporting to Mexico and Latin America with free trade agreements.

Under the Canada-United States-Mexico Agreement (CUSMA), for example, the 11%  tariff reduction to expand into the U.S. resulted in “huge savings” for the company, she says.

“For each $1,000 we export to the U.S., we now save $110 on qualifying products, which has a huge impact on the cost of goods sold. By qualifying for CUSMA, we’re now able to reinvest the savings into something that brings more value to our product and customers.”

Keeping production in Quebec was a top priority for Devinci. It allows them to offer their customers “a bicycle made in Canada that has a price point that’s comparative to other bicycles with the same components, but made overseas,” says the busy mother of two, who credits Export Development Canada (EDC) for helping her company navigate CUSMA and the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

“To put it simply, with the same/or equivalent components used to build both bicycles, we are as competitive and our frame is conceived, welded, painted and assembled here in Quebec,” she says.

Time to diversify

To facilitate exporting, FTAs clearly outline the rules that govern trade between member nations and for Canadian exporters, they’re a gateway to some of the largest markets in the world.

According to the Government of Canada, there’s never been a better time for Canadian businesses to diversify internationally.

You should also check out

Male sailboat crew dressed in red navigate choppy seas.
Guide April 09, 2025
Global Economic Outlook—Spring 2025

With growing risks, Canadian companies face new challenges. EDC’s Global Economic Outlook offers insights to help you make better business decisions.

Since its introduction in 2018, Canada’s Export Diversification Strategy has worked to secure more opportunities for Canadian exporters and investors to help them thrive in global markets. Its goal is to achieve 50% more overseas exports by 2025 and make Canada “the hub of global trade.”

“Canada’s export diversification efforts help to ensure a sustainable and inclusive economic future by helping more Canadians share the benefits brought by international trade,” says Christine Tremblay, executive director of the Trade Portfolio and Strategy division at Global Affairs Canada.

“Canada’s economy is more robust and inclusive when our trade engages the full diversity of our exporters, talent, sectors, and innovation,” Tremblay says.

With myriad export opportunities in markets around the world for Canadian companies in every sector, it just makes sense to make the leap overseas, she says.

Creating a global mindset

Recognizing the importance of trade to the Canadian economy, governments have negotiated FTAs to enable companies to access new global markets with greater ease. These agreements not only provide a level playing field for companies to compete internationally, but reduce red tape to create more predictable, fair and transparent conditions for businesses operating abroad.

But increasing our exports isn’t the government’s responsibility alone. Canadian firms, particularly small- and medium-sized enterprises (SMEs), need to develop a global mindset to compete and win new international business.

You should also check out

Landscape of New York city's buildings.
Article
Expanding your business south of the border

Get all the information you need to expand your business into the U.S. with confidence.

Here’s why: The vast majority (98.1%) of companies in Canada are SMEs, making them “the backbone” of our country’s economy. In 2021, Canada’s goods exports totalled $575.1 billion of which SMEs were responsible for 42.7%. Innovation, Science and Economic Development Canada (ISED) also notes that nearly all (97.6%) of Canada’s 52,663 goods exporters that year were SMEs, but only a small number of SMEs actually export.

Lack of trade knowledge, cash flow, supply chains and confidence are among the key reasons they’re reluctant to go global.

“While SMEs are some of the biggest potential beneficiaries of free trade, they can be affected by red tape, administrative challenges or lack of resources to manage the exporting process,” says Dina Santos, Canada’s consul general and senior trade commissioner in Boston. 

Although the widespread benefits of FTAs are well-known, Santos says many Canadian SMEs aren’t capitalizing on them because of these trade barriers. It’s a missed opportunity that can negatively impact a company’s sustainability and future prosperity.

“FTAs support economic growth, open doors internationally and facilitate the development of diversified and resilient supply chains,” she says, adding, “Diversifying our trading relationships and partners will also help make Canadian companies more resilient to future disruptions in international trade.” 

Ross Prusakowski, director of EDC’s Economic and Political Intelligence Centre (EPIC), couldn’t agree more.

“With Canada’s trade deals increasing access to European (CETA) and Asian countries (CPTPP) over the last half decade, we’re seeing companies start to use these agreements to move beyond North America,” notes Prusakowski. But he’s quick to point out that it can be challenging for many SMEs to make the leap.

“Leveraging FTAs fully takes time and attention that they might not be able to spare and developing customers or markets far from home can be expensive and complex,” he says.  “When your company is on the smaller side and have people wearing many hats at once, exporting is often something that happens by chance, rather than as a result of planning.”

It takes a village

Exporting into new markets to diversify your business can be daunting, but there’s plenty of support to guide you on your journey, including:

  • At EDC, our mission is to help Canadian businesses of all sizes understand and benefit from the “export impact.” With our expert knowledge, global connections, and financial solutions, they can enter new markets with confidence and expand their international footprint. 
  • Trade Commissioner Service (TCS): With trade commissioners in more than 160 cities worldwide, the TCS helps connect Canadian businesses with international opportunities, offers trade missions and provides funding and support programs. 
  • Innovation, Science and Economic Development Canada (ISED) offers programs to increase investment in Canada, boost innovation and create a fair and competitive marketplace.
  • Canadian Commercial Corporation (CCC) helps Canadian business build successful commercial relationships with governments around the world.
  • Business Benefit Finder is online tool to help Canadian businesses access government programs and services to help them grow.

Dos and don’ts of using FTAs

Even if your target market is in a country that has an FTA with Canada, it may not be right for your business. Here are a few important factors to consider:

Do

  • Assess whether the agreement’s provisions apply to your products or services.
  • Ensure that you comply fully with its rules.
  • Build relationships with your customers and partners.
  • Use expert help to assess your overall free trade agreement position.

Don’t

  • Make a free trade agreement the sole reason for entering a market.
  • Neglect your market research just because there’s an agreement in place.
  • Depend solely on an agreement to keep you competitive.

Continue series

Canadian businessman walks to a meeting in a European capital.

Part 1 of 3 in series

Benefits of Canada’s free trade agreements

Continue series

Part 2 of 3 in series

Why exporters do better with Canada’s trade agreements

     

Related topics

   

Written by

Karen Turner, headshot EDC

Karen Turner

Senior international trade editor,

Receive, via email, EDC’s TradeInsights e-newsletter, trade information and other promotional messages to make smarter export decisions.

By submitting this form, I consent to receive EDC’s e-newsletters, trade information and promotional messages, and can withdraw consent at any time.

Thank you for reaching out to EDC.

Please watch your inbox for our email.

                                               

Recommended articles for you

  • Article
    May 19, 2023
    Female salon owner receives a delivery in her shop

    Incoterms: How the rules of trade impact your revenue

    When an exporter earns revenue from their shipped goods depends on the terms of their contract.

  • Weekly Commentary
    May 25, 2023
    Stuart Bergman, EDC

    Critical path for critical minerals

    Canada can play leading role in evolving sector’s complex supply chains

  • Article
    June 06, 2023
    Slow-motion photo of three cyclists competing in a race

    Edging out the competition in global markets

    International markets can be fiercely competitive. Find out how to edge out the competition.

  • Article
    May 16, 2023
    Aerial view of Houston, Texas, overpass and traffic.

    Building opportunities in the U.S. infrastructure sector

    EDC’s Yousef Salama, based in Chicago, has a wealth of experience in the infrastructure sector.

  • Article
    June 16, 2023
    Jenn Harper, founder of Cheekbone Beauty, Canada’s first Indigenous cosmetic company

    Cheekbone Beauty is changing the face of Canadian cosmetics

    Indigenous-owned company braces for exponential growth

Date modified: 2023-07-21

I consent to receive regular trade insights, as well as information about EDC solutions and events. I can withdraw my consent at any time by unsubscribing to any such message.

Sorry, our system is temporarily unavailable. Please try again later.

Thanks for subscribing

You’ll get our latest trade intelligence right to your inbox.

For partners and investors

  • Investors
  • Canadian financial institutions
  • Insurance brokers

Communities

  • Our alliances
  • Newsroom

Have questions?

  • Contact us
Government of Canada EDC Homepage
Export Development Canada
  • Privacy and Cookie use
  • Legal
  • Accessibility