Experts believe closer ties between the United States and Cuba will eventually make economic waves for Canadian business, though it remains unclear who stands to benefit – or lose out.
Steps taken Wednesday toward rebuilding U.S.-Cuba relations will almost certainly lead to greater prosperity for the Caribbean country, which is also an important Canadian trading partner, said Carleton University economics professor Arch Ritter.
A boost in Cuba’s wealth will be a net benefit overall for Canada, he said.
But not everyone will welcome the change.
Ritter expects some Canadian firms to suffer from a bigger U.S. presence in Cuba.
He said a number of Canadian exporters will likely be "squeezed out" from an eventual influx of American competition, particularly in key sectors like agricultural products and machinery.
Canada did nearly $1 billion worth of trade with Cuba last year, including more than $465 million in exports. For at least the last five years, the most exported products to Cuba have been machinery and parts, followed by cereals.
Canada has maintained ties with Cuba since the U.S. imposed an embargo in the early 1960s. That continued relationship has allowed Canadians to forge business relationships in Cuba without having to contend with as many rivals, especially those from the U.S.
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