Export Development Canada (EDC) introduced the Trade Impact Program, a new initiative to support Canadian companies dealing with market uncertainty.
Through this program, EDC will provide up to $5 billion in financial support over the next two years to help businesses manage economic challenges and maintain stability.
The program expands EDC's financing and insurance solutions, offering loans, guarantees, and working capital support to help exporters mitigate risks and explore new opportunities. Canadian businesses will also have increased access to credit insurance, foreign exchange guarantees, and financing options to support their global expansion efforts.
Alison Nankivell, president and CEO of EDC, emphasized the organization's commitment to exporters during this period of uncertainty. She stated that EDC recognizes the difficulties companies are facing and is taking action to provide meaningful support. She highlighted EDC's long history of helping Canadian businesses overcome economic challenges and reaffirmed that the organization will continue to stand by exporters as they adapt to changing market conditions.
Many Canadian businesses are experiencing rising costs, currency fluctuations, and supply chain disruptions, mainly due to uncertainty in the US market. Given Canada's highly integrated trade relationship with the United States, companies deal with unpredictable conditions that may impact sales and operations. To address these concerns, EDC anticipates increased demand for accounts receivable insurance, which helps businesses manage payment risks from foreign buyers. Additionally, companies may require more significant working capital to support existing contracts, navigate potential declines in US sales, or adjust to volatility in the Canadian dollar exchange rate.
Todd Winterhalt, senior vice president of international Markets at EDC, stressed that small- and medium-sized businesses are particularly vulnerable to market volatility and potential tariffs. He stated that EDC is deploying its full range of solutions, including insurance, financing, business connections, and market intelligence, to help businesses respond to these challenges. He noted that EDC's priority is to provide timely and meaningful support so exporters can focus on maintaining operations and seizing new opportunities.
As part of the Trade Impact Program, EDC is expanding its market intelligence resources to help businesses navigate the current trade landscape. A new US market intelligence hub offers insights into tariffs, trade policies, and economic trends. Companies can also access the Export Help Hub, which guides US operations and strategies for diversifying into new markets. According to EDC, it continues to collaborate with industry stakeholders to adapt its support programs based on evolving market conditions.