Doing business in Sweden: Opportunities for Canadian exporters

As Canadian companies look to diversify their markets, partners and supply chains, Sweden is emerging as one of Europe’s most compelling markets.

This country of about 10.6 million people (the highest population in the Nordic region) may not be the largest market in the European Union (EU)—or the easiest place to compete on price—but for Canadian exporters with high-quality products, advanced technologies, clean energy solutions or specialized industrial capabilities, Sweden offers unique potential.

“Sweden is a wealthy and innovation-driven economy with a transparent business environment, strong environmental, social and governance (ESG) standards, and deep connections into Nordic and European value chains,” says Bryan Sirois, chief representative for the Nordics at Export Development Canada’s (EDC) newest representation, which is set to open in Stockholm in late 2026.

Sweden also shares many of Canada’s societal values and commercial priorities. Both countries are committed to democratic principles, human rights and sustainability. Both have economies with advanced industrial capabilities and a strong focus on improving productivity, strengthening critical infrastructure and building more resilient supply chains.

“We have so much in common with Sweden, culturally and in terms of our values. This gives Canadian companies a certain advantage in this market,” says Sirois. “These alignments matter at a time when Canadian exporters are reassessing supply chains, market concentration and geopolitical risk.”

Sweden is eager to trade with Canada and has identified several areas, including defence and green and digital transition technologies—where Canadians excel—as priorities in the country’s push for economic growth.

In 2025, the Swedish government launched its Made with Sweden initiative, which pushes for global trade and investment partnerships with other countries. “We want our goods on their shelves, and their goods on ours,” Sweden’s Minister for International Development Cooperation and Foreign Trade, Benjamin Dousa, said in a press release. In the same year, Sweden and Canada signed a strategic partnership that includes commitments to strengthen trade and investments between the two countries.

As an export market, Sweden has much to offer. It’s a high-income, highly developed economy that continues to boast one of the highest levels of gross domestic product (GDP) per capita in Europe, despite an economic contraction in 2023.

According to Statistics Sweden, the country’s GDP rose to about 6.6 trillion Swedish krona in 2025, up from about 6.4 trillion Swedish krona the year before. That’s an increase of nearly 2.8%, or about $959.5 billion compared with $933.5 billion. The International Monetary Fund projects a further increase in 2026 of about 2.2%, with GDP growth settling at 1.7% over the medium term.

“That’s a pretty good growth rate for a Western European economy,” says Lili Mei, an economist and senior country risk analyst at EDC. “Western Europe in general tends to be a lower-growth market because it’s a mature market. Looking farther into the future, I think what’s going to drive growth in this region—and in Sweden—will be investments in productivity gains.”

Sweden’s population has grown at a steady pace over the last 65 years, but declining birth rates and immigration levels, combined with an aging population, could hamper economic growth in the long term. To boost productivity and stay competitive, Sweden has announced strategies and partnerships focused on innovation, technology and green-transition solutions. These strategies build on a successful history of research and development and technological advances that have pushed Sweden to the top spot in the European Commission’s European Innovation Scoreboard.

“Because of the demographic challenges that it faces, Sweden has been investing and will continue to invest in productivity gains,” says Mei. “Swedish companies and the country overall are generally well-positioned for adopting newer technologies, such as artificial intelligence (AI) and advanced manufacturing, and I think we’re going to see even more investments in these types of innovations. For Canadian companies with strengths in these areas, this translates into more export opportunities.”

Canadian businesses sell a wide array of products to Sweden, ranging from farming, fishing and forestry products to industrial machinery and motor vehicles. Services are also an important part of the relationship: In 2024, Canadian services exports to Sweden totalled $1.3 billion.

Over the past five years, the Top 5 export categories from Canada to Sweden have been:

• Aircraft/aerospace and other transportation equipment and parts
• Energy products
• Metals and minerals
• Electronic and electrical equipment and parts
• Industrial machinery equipment and parts

The first three categories on this list saw dramatic increases in export dollar values, according to Statistics Canada:

• Aircraft/aerospace and other transportation equipment and parts went from $15.7 million in 2021 to almost $321 million in 2025, a significant increase that can be attributed in large part to aircraft sales by Montreal-based Bombardier to Saab in Sweden.
• Energy products rose from just $7.4 million to $218 million over the same period.
• Metals and minerals went from $37 million to more than $99 million.

These numbers illustrate the growing demand for Canadian goods in Sweden and the vast potential for Canadian exporters.

Trade agreements and market access

Canadian companies enjoy preferential access to the Swedish market through the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), the wide-ranging agreement between Canada and the 27 member states in the EU. Its benefits for Canadian exporters include:

• Eliminating duties on 99% of all tariff lines
• Increasing market transparency and stability
• Opening new opportunities to participate in EU procurement markets
• Simplifying temporary entry for business professionals, making it easier to establish local presence, conduct negotiations and provide after-sales support
• Enhancing investment protection and dispute mechanisms, providing certainty for investors
• Facilitating mutual recognition of professional certifications to enhance labour mobility

Under CETA, Canadian companies can compete for Swedish government contracts on equal footing with other EU suppliers, opening substantial opportunities in infrastructure, technology and professional services.

“One of the key things to keep in mind with regards to Sweden is that it’s highly industrialized but also has a lot of government services,” says Ime Ekong, EDC’s senior regional manager for Europe. “This means there are a lot of opportunities to bid for contracts at national, regional and local levels of government.”

Trade between Canada and Sweden has grown substantially since CETA came into force in 2017. Bilateral merchandise trade between the two countries totalled $6.2 billion in 2025, up 135% from 2016. Canadian merchandise exports to Sweden added up to $962 million in 2025 while imports from Sweden reached $5.2 billion.

Mei describes Sweden as a market where Canadian companies can compete by being technically strong, reliable, sustainable and highly specialized to meet the needs of a particular sector. She points to strong opportunities in several key areas.

Defence, aerospace and security

Despite its small population, Sweden has a massive, world-class and export-oriented defence industry. It’s strong in fighter aircraft, submarines, armoured systems, sensors, surveillance, cybersecurity and advanced defence technologies. Sweden’s membership in the North Atlantic Treaty Organization (NATO) and Europe’s push to rebuild defence capability are increasing demand for secure supply chains and trusted partners.

Canadian defence and security, aerospace, cybersecurity and advanced manufacturing firms are uniquely positioned to provide Sweden and the rest of Europe with defence equipment, technology and services. In February 2026, Canada became the first non-European nation accepted into the EU’s Security Action for Europe (SAFE) initiative. Under this agreement, Canadian firms get preferential access and treatment—equivalent to what’s accorded to European companies—to defence contracts financed under SAFE’s €150 billion loan program to support and expedite defence procurements by EU member states.

Mei says some Canadian firms are already well-positioned because they are nimble, technically advanced and able to serve both commercial and military applications (i.e., dual-use technologies). She highlights other areas of opportunity:

• uncrewed systems
• electronic components
• cybersecurity for critical infrastructure
• technologies that can be integrated into multiple defence platforms and existing value chains

Ekong points to existing cooperation between Swedish defence companies and Canadian businesses. These include the partnership between Saab and Bombardier, focused on aircraft platforms. There’s also an agreement, signed in August 2025, between Swedish steel producer Swebor Stål Svenska AB and Roshel Inc., an armoured vehicle manufacturer in Ontario. The two companies announced plans to establish Canada’s first facility dedicated to ballistic-grade steel production, combining Swedish expertise with Canadian mined iron ore, domestic steel production and advanced manufacturing.

Critical minerals

Sweden’s green transition and defence priorities depend on secure access to critical minerals. Canada’s resource base, mining expertise and critical minerals strategy make it a valuable partner.

“There’s a real interest in Sweden in securing access to critical mineral resources from Canada,” says Ekong.

Canada has well-established critical minerals production, with significant capabilities in copper, nickel and potash. The country also continues to advance new projects in lithium, rare earth elements and graphite.

The critical minerals opportunity for Canada is not limited to raw materials. Sweden’s deep expertise in mining, industrial technology and sustainable production could open doors for Canadian businesses in:

• minerals processing
• equipment
• environmental technologies
• mine electrification
• automation
• financing partnerships and supply agreements

Beyond Sweden, there’s a long list of raw materials that matter to European economies as they build batteries, transmission systems, defence technologies, renewable-energy infrastructure and advanced manufacturing capacity. Canada is ready to respond, thanks to broader efforts to build secure, diversified supply chains in partnership with like-minded economies.

Energy transition and clean technology

Sweden is already one of Europe’s cleaner electricity markets. Roughly 70% of its electricity production comes from hydroelectric and nuclear power. Wind has become a growing part of the mix. Mei says nuclear is increasingly part of the energy conversation in Europe, particularly as countries seek consistent baseload power for electrification and AI-related energy demand.

Sweden’s next phase of growth will need reliable, always-on electricity to support electrification and industrial decarbonization, alongside intermittent renewables. This opens potential opportunities for Canadian companies in areas such as:

• grid technology
• energy storage
• energy efficiency
• nuclear services
• clean technology
• engineering
• industrial decarbonization

Digital technology, AI and cybersecurity

Sirois says digital infrastructure, AI, quantum, cybersecurity and advanced digital services are areas where Canadian companies can find opportunities and excel in Sweden.

“Some of the founding fathers of AI are either Canadian or have strong ties to Canadian institutions,” he says. “Quantum is the same thing. Some of the leading minds in quantum sit right here in Canada.”

Sweden has set a national goal of becoming one of the world’s Top 10 countries in AI and has said it wants to be world-leading in the use of AI in public administration. A Swedish AI policy announced in early 2026 prioritized AI in innovation and research cooperation with other countries.

The strongest opportunities for Canadian companies will likely be for those with proven products that align with European privacy, cybersecurity and responsible AI rules. Sweden already recognizes Canada’s AI expertise through partnerships between AI Sweden—the country’s national centre for AI—and Canadian institutions, including Quebec’s Mila, known as the world’s largest academic research institute focused on machine learning, Unity Health Toronto, and Concordia University in Montreal.

Sweden’s appeal to Canadian exporters goes beyond its domestic market. Ekong says the country also offers Canadian businesses access to neighbouring Nordic and Baltic countries and the wider EU economy.

Geographically, Sweden occupies a strategic spot at the centre of the Nordic market. It shares land borders with Norway to the west and Finland to the east and has direct access to the Baltic Sea. Denmark is a short ride away by bridge or tunnel, while the Baltic states of Estonia, Lithuania and Latvia can be reached by plane in about an hour, or by ferry within a day. The rest of the EU is also within easy access by plane or ferry.

A robust logistics infrastructure—including a high-quality transport network, efficient ports, reliable customs and advanced supply chain technologies—adds to Sweden’s viability as a regional base where Canadian exporters can establish warehousing, sales representation, after-sales service or partnerships before expanding into neighbouring markets.

Sweden also presents an ideal test market for gauging potential demand in other countries. It has a decades-long history as an early adopter of new technologies such as mobile phones, cashless payment and electric vehicles that are now in widespread use in markets around the world.

Ekong says exporters looking to use Sweden as an entry point to Nordic and EU markets should forge strong partnerships and build credibility within Sweden and use these connections to reach other potential customers in the region.

“Sweden is home to globally recognized companies in sectors that matter to Canada, including industrial equipment, mining technology, telecommunications, automotive systems, aerospace and defence, retail, clean technology and life sciences,” he says. “Many of these companies—like Boliden, Sandvik, Ericsson, Saab, Atlas Copco and IKEA—operate internationally and are deeply embedded in regional and global supply chains.”

Sweden is one of the lower-risk markets Canadian exporters can consider from a sovereign, legal and institutional perspective. It has strong rule of law, transparent institutions, stable public finances and a predictable business environment. But it’s also competitive, expensive and highly regulated.

“This is a developed and well-supplied, competitive market,” says Mei. “It’s not a market where businesses compete on price alone. It demands relationship-building and more sophisticated companies to compete.”

Key challenges facing Canadian exporters in Sweden include:

• High costs: Labour, real estate, compliance and local representation can be expensive. Companies need realistic pricing and margin expectations.
• Strong competition: Swedish, Nordic and EU firms are often entrenched and technologically advanced.
• Regulatory complexity: EU rules on sustainability, data, product standards, procurement and reporting can create administrative burden.
• Sophisticated buyers: Swedish customers expect high quality, transparency, reliable delivery and evidence-based claims.
• Relationship-driven sales cycles: Direct communication doesn’t necessarily mean quick transactions. Swedish buyers may be candid, but they still value trust and long-term relationships.
• Currency exposure: Sweden uses the krona, not the euro. Mei notes that because the Swedish krona is a free-floating currency, its value fluctuates, depending on market forces such as export market demand, interest rate differentials and global market stress. Exporters should understand their foreign-exchange exposure and consider hedging for this risk.

Sweden rewards preparation, credibility and patience. The companies that succeed are often the ones that invest early in understanding the market, finding the right partners and demonstrating they can deliver over time.

• Do your homework before you go. Use market intelligence from EDC, the Trade Commissioner Service (TCS) and sector associations to understand demand, regulations, competitors, procurement processes and buyer expectations.
• Find the right local partner. A distributor, systems integrator, research partner, or strategic customer can help validate demand and explain how decisions are made. Ekong says the right partner can help Canadian exporters “test the waters” before committing to a larger market entry.
• Don’t mistake directness as an invitation to be transactional. Swedish business culture can be direct and candid, but that doesn’t mean deals happen quickly. Ekong says companies should avoid arriving in Stockholm and immediately asking, “How many do you want to buy?” The first meetings are often about fit, trust and mutual understanding.
• Build credibility early. Sirois says credibility is essential in a relationship-driven market. Canadian companies should be ready with reference customers, technical documentation, sustainability credentials and a clear explanation of why their solution fits Sweden.
• Treat sustainability as commercial due diligence. ESG isn’t a side issue in Sweden. It’s part of product evaluation, procurement, financing, investor scrutiny and brand reputation. Exporters should be ready to substantiate claims on emissions, labour, sourcing, circularity and compliance.
• Think beyond Sweden, but don’t overgeneralize the Nordics. Sweden can help Canadian firms connect into Nordic and European ecosystems, but each market has distinct sectors, decision-makers and norms. Build from Sweden outward with a sector-specific plan.

If Sweden’s on your export growth radar, EDC can help you assess the opportunity, understand the risks and prepare for market entry. With expertise in international markets and a growing presence in Sweden, EDC can support Canadian companies with market intelligence, risk management solutions, financing support and connections that can help you enter Sweden with confidence.

EDC can also help you navigate practical export challenges—from managing payment and credit risk to strengthening your working capital—as you pursue new opportunities. And when local market knowledge or on-the-ground introductions are needed, the TCS can help you better understand the business environment and identify potential contacts.

EDC solutions for exporters include:

• A full suite of trade credit insurance products to lower your risk for doing business abroad
• Support with getting access to working capital
• Expertise to enable you to learn more about international markets
• Connections to international companies in need of your products and services

Ready to take the next step on your market diversification pathway? Connect with EDC to discuss your plans for Sweden.

Is Sweden a good market for Canadian exporters?

Yes. Sweden is a wealthy, innovation-driven EU market with demand for high-quality products, clean technologies, advanced manufacturing and specialized industrial capabilities. For Canadian exporters, it can also serve as an entry point to Nordic, Baltic and broader European value chains.

What are the best export opportunities in Sweden for Canadian companies?

Strong opportunities include defence and aerospace, critical minerals, clean technology, energy transition solutions, digital technology, AI and cybersecurity. Canadian companies that can demonstrate technical strength, reliability, sustainability and sector-specific expertise are better positioned to compete in Sweden’s sophisticated market.

How does CETA help Canadian companies export to Sweden?

CETA gives Canadian companies preferential access to Sweden as part of the EU market. It eliminates duties on most tariff lines, improves market transparency, supports temporary entry for certain business professionals and opens access to covered government procurement opportunities in Sweden.

What challenges should Canadian exporters expect in Sweden?

Canadian exporters should prepare for high operating costs, strong local and EU competition, complex regulations and sophisticated buyers. Success often depends on credible local partnerships, clear sustainability claims, strong technical documentation and a long-term approach to relationship-building.