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OTTAWA — Canadian companies and diplomats are working with their European colleagues to find ways to diversify trade as the U.S. threatens to impose steep tariffs.
“We want to be part of the solution, in terms of creating new business opportunities and diversifying trade,” said Tjorven Bellmann, Germany’s ambassador to Canada.
She was speaking at a press briefing Wednesday ahead of the Hannover Messe, the world’s largest trade fair. It’s an annual event in Germany and Canada is this year’s partner country.
“It’s a truly timely opportunity, given the geopolitical circumstances and all the discussion here in the country about the need to diversify trade,” Bellmann said.
She said she’s one of the European ambassadors in Ottawa who have talking with each other and with corporations, researchers and government officials on both sides of the Atlantic about ways to boost trade.
Bellmann said there’s a lot of interest in capitalizing on a trade deal that Canada and the European Union signed in 2017 – the Comprehensive Economic and Trade Agreement, known as CETA.
“I’m asking the question to interlocutors throughout Canada that I meet with – how can we make CETA even more operational?” she said.
“Both sides have work to do on identifying opportunities.”
She said Canadian universities are playing a large role in increasing trade as both countries look to move forward in fields like green energy and quantum computing.
Liberal MP Ryan Turnbull said Canada is looking to Europe as a counterbalance as U.S. President Donald Trump threatens to impose damaging tariffs on Canada and its European partners.
“The rise of protectionism and (the) economic uncertainty that brings us, it’s shaken us up,” said Turnbull, who is parliamentary secretary to the industry minister.
“The geopolitical tensions that we currently experience, I think, make this timely in terms of an opportunity for Canada to seize strengthening a diverse set of relationships that will make us more resilient in the future.”
Bellmann said the Hannover Messe trade show brings together about 130,000 in-person attendees, such as engineers and CEOs, along with 4,000 exhibitors from 156 countries.
During a 2022 visit to Newfoundland to sign a deal to import Canadian hydrogen, German Chancellor Olaf Scholz announced that Canada would take centre stage at this year’s event.
Since then, Industry Canada has been doing briefings with Canadian corporations and possible partners on multiple continents to lay the groundwork for deals to be signed at Hannover Messe.
Canadian companies will have a prominent physical space at the fair, and they will help lead various sessions.
They include the Eureka summit on research projects geared toward commercialization; Canada will be the first non-European country to co-chair that session. Canada joined the EU’s large Horizon Europe research fund in late 2023.
Stéphane Lessard, acting director-general for European affairs at Global Affairs Canada, said Germany shares with Canada values that are “being challenged around the world” and Ottawa is seeking partnerships on innovation and research that have longer timelines than trade in goods.
“Canada is looking for friends that share our values, so this really matters,” he said.
Jayson Myers, head of Next Generation Manufacturing Canada, said he’s gone to the event in previous years and saw one Canadian company get a $5 million investment on the spot.
“It’s an opportunity for Canadian companies to meet with new suppliers, new innovation partners, to see what is the leading edge,” said Myers, whose group leads one of Ottawa’s five innovation clusters.
“These discussions are much more important than ever.”
He said Canadian companies are looking to partner this year with companies using artificial intelligence, quantum technology and robotics to improve their products, especially in Germany’s large automotive and machinery sectors.
Myers said he was pleasantly surprised to see few companies have pulled out of the Canadian delegation since Trump’s tariffs threats began. He said nearly 250 companies are sending roughly 280 delegates, along with 1,000 Canadian attendees.
Earlier this month, Germany’s diplomatic missions and trade agency released a joint statement with the Canadian-German Chamber of Industry and Commerce saying that Berlin wants more trade and investment with Canada.
It noted that bilateral trade endured throughout the COVID-19 pandemic and there is “room to improve.” “We don’t reap CETA’s full potential,” the statement reads.
Bellmann said Trump’s trade threats haven’t hurt German investment in Canada but corporations elsewhere are waiting for more certainty.
“A lot of investment decisions are not being taken at the moment, which is something we regret,” she said, adding that the EU is ready to impose retaliatory tariffs but hopes the Trump administration backs down.
“We don’t believe we should start dividing the world up into mutual tariff barriers and tariff threats.”
This report by The Canadian Press was first published Feb. 26, 2025.
Dylan Robertson, The Canadian Press
