The polar bear capital of the world could very well be the answer to Canada’s trade woes.
What happened: The federal government is exploring the idea of turning the remote port of Churchill, Manitoba, into a full-fledged export hub. Commodities like natural gas, potash, and canola could be sent from western provinces to Europe via the Arctic, per Bloomberg News.
- Western premiers and the Indigenous owners of Churchill’s port and railway have voiced support for an expansion, while Energy Minister Tim Hodgson says he’s already seen multiple pitches to develop the port.
- Positioned on the edge of Hudson Bay, Churchill is one of Canada’s only ports with direct access to the Arctic, serving as an ideal gateway to many European countries.
Why it matters: One of Prime Minister Mark Carney’s priorities is to reduce Canada’s dependency on the U.S. market, where we currently send about 75% of our exports. And the infrastructure needed to open a new trade corridor is likely the kind of national interest project this government wants to fast-track.
- Since taking office, Carney has been specifically pushing for closer trade ties with the EU, Canada’s second-largest trading partner. Canada’s bilateral trade with the EU jumped 65% between 2017 and this year.
Yes, but: The feds are investing in new icebreakers that could help extend the region's shipping season beyond four months, but Churchill is still blocked by ice most of the year. Critics argue that insurers and private shippers will be hesitant to approve the port as a year-round option given that risk.—LA