And one province stands to take the brunt of the storm.
The Canadian government will go forward with the export permits that allow Saudi Arabia to acquire Canadian-made Light Armored Vehicle III (LAV III). The Minister of Foreign Affairs, Stéphane Dion, stated that Canada would block future export permits if Saudi Arabia uses the purchased military equipment against its own citizens.
The next seven months could be very nervous times in Canada's forestry sector, particularly softwood lumber. That's because the Softwood Lumber Agreement that Canada signed with the U.S. in 2006 expired last October 12. Canada had hoped to simply renew the agreement at that time, but the U.S. refused.
If it sticks to its historical range, the loonie mostly has an upside at this point.
Economists say data out this week is likely to show that Canada slipped into a technical recession in the second quarter, but the contraction should be short-lived.
For years, economists have been saying that if Canada wants sustainable growth, it has to stop relying on consumers taking
How is Canada faring in our industrial diversification? Progress on trade diversification over the past 15 years is likely one of the most remarkable developments in Canadian economic history. A strong dependence on traditional markets was only enhanced by the Canada-US FTA, which saw exports to the US soar to over 85 per cent of the total. But a big shift began in the New Millennium.
Tightening U.S. monetary policy suggests that the Canadian dollar will remain weak. And in spite of competitiveness concerns, exports are rising enough this year to suggest 10 per cent growth, and an added 6 per cent in 2015. This in turn will spur business investment, lifting Canadian GDP growth to 2.8 per cent in 2015.
Its small share of the overall marketplace might lead many to conclude that small exporters are too small to warrant attention. That would be a great mistake. The dynamism of this segment suggests that it is already a powerful new force in Canada's economy.
The tech wreck, the thickening border with the U.S. and the soaring loonie in the mid-2000's turned the attention of Canada's exporters to fast-growing emerging markets. In a relatively short time span, our trade with this rapidly-rising part of the global economy has risen from less than 5 per cent to almost 13 per cent of our merchandise exports.