Canada Must Focus on Value-Added Products Instead of Raw Materials: EDC

Amid the federal government’s efforts to open up new markets, Export Development Canada (EDC) said in a report released Thursday that Canada needs to invest in processing raw materials domestically and turning them into higher-value products instead of exporting them in their raw form.

EDC CEO Alison Nankivell said such investments could add nearly $100 billion to Canada’s GDP over the next decade.

The report used yellow peas as an example. While exporting raw peas may generate about $30 per tonne, processing them into flour can raise the value to $300 per tonne. Turning them into products such as pasta or snacks could increase the value to as much as $3,000 per tonne.

Nankivell said Canadian companies are leaving significant profits on the table by exporting raw commodities rather than processing them domestically.

The report also noted that commodity exports continue to play an important role in expanding and diversifying Canada’s trade.