Trade with Developing Countries and Development Assistance
This report explores linkages between Canada’s investment in official development assistance (ODA) and Canadian trade with partner developing countries. Our findings span three case studies of Canadian-led development projects which demonstrate linkages between Canadian ODA and trade interests.
Case Studies on the Link Between Canadian ODA and Bilateral Trade Potential
by Bridget Steele
Published: July 2018
Development spending can leverage Canadian expertise in international trade-related best practices, trade regulations, and infrastructure to expand Canada’s trade relationships with developing countries.
Development projects can contribute to market creation, expansion, and economic sustainability through procurement, relationship building, knowledge transfer and exchange, and exposure to new technologies.
Activities supported by Canadian ODA can provide invaluable knowledge of the local business environment, practices, and partnerships, which benefit Canadian businesses seeking to operate in developing countries. As such, ODA can complement existing Canadian foreign direct investment (FDI) and promote new private investment.
Strategic linkages between Canadian ODA and Canadian trade are possible and potentially plentiful, but, “win-win-win” benefits have thus far been more coincidental than purposeful.