Can International Assistance Also Help Build Canada’s Long-term Trade Relationships?

New research commissioned by Cooperation Canada and conducted at Carleton University’s Norman Paterson School of International Affairs examines the relationship between Canadian bilateral aid and exports across 155 partner countries from 1989 to 2024.

The study finds that international assistance can contribute to stronger economic relationships over time, but it is not a short-term or automatic export-promotion tool. Results vary significantly by country context, the type of assistance provided and the time required for trade effects to emerge.

The findings reinforce a clear policy direction: Canada should protect poverty-focused and humanitarian assistance while exploring additional, targeted approaches that strengthen local productive capacity, respond to partner-country priorities and support more equitable, long-term economic partnerships.