Introduction to exporting

Exporting means selling your products or services to customers outside Canada, rather than focusing solely on serving the domestic market. It includes both direct and indirect exporting, such as selling through distributors, online platforms, or intermediaries. 

Exporting covers goods, services, and digital trade, including cross-border e-commerce through various channels. 

Exporting expands your focus from a single domestic economy to a broader set of customers, rules, and business conditions. It can open access to new revenue streams that are not available in Canada alone. 

In Canada, approximately one in six small-and-medium sized enterprises (SMEs) exports. This share has been rising over time, especially among smaller firms. Compared with non-exporters, exporters tend to report higher:

• revenues
• profits
• productivity
• investment levels

This suggests that exporting is a solid path to stronger growth for businesses of all sizes.

Many Canadian SMEs start exporting in small, practical ways, often by serving customers in the United States (U.S.) or other nearby markets. In some cases, businesses may not initially describe this activity as “exporting.” However, selling to any customer outside Canada is exporting.

For many small firms, exporting is a regular, manageable part of their growth strategy rather than a one-time, high-risk leap.

This section will help you: 

• decide whether exporting fits your growth strategy
• identify realistic target markets and channels
• plan for growth and manage risk

Even if you choose not to export right away, understanding the basics can help you respond to interest or enquiries from international markets and prepare for future opportunities.

To quickly assess whether exporting could be part of your growth path, Section 2 (link to section) guides you through the: 

• Export readiness assessment quiz 
• Export readiness gate and improvement plan 

Exporting offers important benefits, but it also introduces challenges that you need to recognize early.​

• Access to new customers and niches: International markets can provide demand that does not exist, or is limited, in Canada. It allows you to grow beyond the domestic ceiling.​
• Higher sales and profitability: Exporting can increase sales by reaching larger or faster growing markets. You may also improve profitability by spreading overhead costs over more units sold.
• Economies of scale and efficiency: Higher volumes can create economies of scale that improve operational efficiency, including better supplier pricing and lower cost of goods sold.
• Risk diversification: Selling in multiple markets reduces exposure to domestic economic downturns, policy changes, or demand fluctuations.
• Brand credibility and partnerships: A recognized international presence can strengthen your brand reputation, open doors to strategic partnerships, and build trust with potential customers and investors.
• Stronger competitiveness: International competition can push you to improve quality, processes, and value propositions. It can also strengthen your position in Canada.​
• Diversified revenue: Selling into more than one market can reduce reliance on a single economy and help stabilize revenue.​

• Higher upfront costs: You may need to adapt products or services, translate materials, travel, or invest in new marketing or staff before seeing returns.
• Time and commitment: Exporting can take months or years to generate results and requires sustained management attention.
• Cultural and language differences: Differences in business culture, language, and practices can lead to misunderstandings if you are not prepared.
• Additional paperwork and compliance: Exporting involves more documentation and regulatory requirements in Canada and in target markets.
• Geopolitical and sanctions risk: Shifting global conditions, trade disputes, or sanctions can affect market access, supply chains, or existing agreements.
• Payment, foreign exchange, and partner risk: Buyers in other markets may operate under different payment terms or currencies, creating exposure to delayed payments, foreign exchange fluctuations, or unreliable partners.
• Logistics and supply chain volatility: Disruptions to transportation, customs, or global sourcing can impact delivery schedules and increase costs.
• Stronger competition: You may face established local and international competitors with strong brands and relationships.
• Political and country risk: Changes in government, conflict, sanctions, corruption, or weak institutions can affect market access, contracts, payments, and the safety of your operations.
• Personal security and travel risk: In some markets, business travel may involve higher risks related to crime, public health, natural disasters, or civil unrest. You may need specific security, insurance, or contingency plans.
• Reputation and responsible business risk: Working with partners that have poor environmental, labour, or human rights practices can harm your reputation and affect access to buyers, financiers and government support.

Even at an early stage, and especially for service and digital businesses, exporting also introduces new obligations around:

• taxes
• contracts
• regulations
• data protection

Later chapters provide practical checklists and tools to help you manage these responsibly.

Understanding both benefits and challenges can help you decide whether exporting is right for your business now and where you may need to build capacity before moving ahead.​

Before you continue, it helps to understand some key terms used throughout this guide.​

• Export: Selling goods or services from Canada to buyers in other countries.
• Export readiness: Your capacity, resources, and management ability to deliver a competitive product or service internationally.​
• Free Trade Agreements (FTAs): Legally binding treaties between countries that reduce or eliminate tariffs and other trade barriers. Canada currently has 15 FTAs in force covering 51 countries and about 1.5 billion consumers, giving Canadian businesses preferential access to many potential markets.
• Global value chain (GVC): The full range of activities involved in creating, producing, marketing, delivering and improving a product or service across multiple countries. This includes design, production, labour, business costs, distribution, sales and customer feedback that helps improve future products or services.
• Harmonized System (HS) codes: Numerical codes from the World Customs Organization’s Harmonized System that provide the global standard for classifying traded goods and determine tariffs, whether a product is admissible for import into a country, and eligibility for FTA preferences.
• Import: Bringing goods or services produced abroad into Canada for use or resale.​
• Incoterms®: Standard three letter trade terms published by the International Chamber of Commerce. The current Incoterms® 2020 version (11 rules) defines how costs, risks, and responsibilities are allocated between seller and buyer in international sales contracts.
• Market entry strategy: How you choose to enter a foreign market (for example, direct sales, agents, distributors, partnerships, or online channels).
• Risk: Potential negative impacts on your business from events such as non‑payment, currency fluctuations, supply disruptions, or regulatory changes. These events can affect your cash flow, costs, delivery performance, and ability to meet customer commitments.
• Resilience: Your company’s ability to respond to various adverse events, limit the damage, and recover. It includes having plans, controls, and backups in place so you can adapt, continue serving customers and restore normal operations after a disruption.
• Responsible Business Conduct (RBC) and Environmental, Social, and Governance (ESG): How your business manages environmental, social, and governance responsibilities, including ethical sourcing, labour standards, and anti‑corruption.​
• Trade compliance: The systems and controls a business uses to ensure its cross‑border activities comply with export controls, sanctions, customs, and other legal and regulatory requirements.

Exporting means following rules in Canada and in other countries where you sell. Even at a beginner level, it helps to understand the main categories of regulation you may encounter. Some regulatory requirements, such as export permits or product approvals, can take time to research and obtain, so it's important to start planning early.

• Export controls and sanctions: Some goods, technologies, and markets are subject to export controls or sanctions. You may need permits, and you must avoid prohibited transactions and dealings with restricted parties. The Sanctions and Export Control Compliance Guide is one of the most important tools in this guide for understanding these obligations and building simple checks into your export decisions.
• Product and regulatory standards: Many markets require specific safety, environmental, labelling, or quality standards. Permits may be required for imports in many categories and dangerous goods may require special labelling and transportation. The Regulatory Compliance Checklists  help you identify and track these requirements.​
• Customs, tariffs and trade documentation: Proper documentation, including the correct use of Incoterms, HS codes, customs declarations, and any available tariff reductions under FTAs supports smooth border clearance, accurate duty, and tax calculation, and reduces the risk of delays, penalties, or shipment holds. 
• ESG and sustainability compliance: Buyers and regulators increasingly expect companies to manage environmental and social impacts. The ESG and Sustainability Compliance Guide explains what this means for your export decisions and how to meet common expectations.​
• Forced labour and human rights due diligence: Governments and customers may require evidence that supply chains are free of forced labour and serious human rights abuses. 
• Data privacy and digital compliance: If you export digital services* or handle personal data, you must comply with privacy and data localization rules. 

*Exporting digital services includes selling graphic design, software development, consulting, translation, or online training to clients outside Canada, even if no physical products are shipped. If a customer in another country pays you for work you deliver over email, cloud platforms, marketplaces, or your website, you are exporting a service.

For many SMEs, especially service and digital exporters, the most common compliance issues relate to export controls and sanctions, tax exposure in foreign markets, data protection obligations, and contractual obligations. It is important to flag these early and get basic advice before signing cross‑border agreements.

You do not have to navigate exporting on your own. Canada has a strong export support ecosystem that includes federal, provincial, territorial, and other ecosystem partners.​

Through our services, we provide export advice, market intelligence, and partner introductions. The Trade Commissioner Service helps Canadian businesses of all sizes access international opportunities and succeed on the global stage. If your business is export-ready, our trade experts on the ground in more than 160 cities across Canada and around the world can help you:

• prepare for international markets
• assess your market potential
• connect with qualified contacts
• resolve business problems abroad

We also offer funding and accelerator programs, trade missions, and support at trade events around the world. Whether you’re new to exporting, or looking to expand to more countries, we’re ready to assist you. Discover how we can help you do business with the world.

We’re an interconnected group of federal partners working together to support your international growth. No matter the size of your company or where you are in your journey, whether you’re planning to enter your first export market, or your twentieth, we offer:

• market intelligence
• introductions to buyers and partners
• advice on your sales proposal
• financing strategies
• solutions to overcome risk
• support in market

Explore support from:

• Agriculture and Agri-Food Canada (AAFC)
• Business Development Bank of Canada (BDC)
• Canadian Commercial Corporation (CCC)
• Export Development Canada (EDC)
• Farm Credit Canada (FCC)
• Innovation, Science and Economic Development Canada (ISED)
• Trade Commissioner Service (TCS)

Selling to Canadian public-sector buyers can support your export journey. Registering as a supplier and responding to tenders helps you:

• build a track record with recognized public buyers
• gain references and past-performance examples you can use in foreign bids
• learn how to meet structured procurement and compliance requirements

Many foreign governments and large international organizations look for evidence that you have successfully delivered similar contracts at home. Government procurement in Canada can be a practical way to build that credibility before you target international tenders.

To compete for federal procurement opportunities, Canadian companies:

• can register in the Supplier Registration Information (SRI) system to obtain a Procurement Business Number
• create a supplier account on CanadaBuys (SAP Ariba) to view and bid on opportunities

Find procurement opportunities as well as training, insights, and resources to position your business in global markets.

You may also work with provincial export agencies, World Trade Centres, chambers of commerce, and industry associations that offer export focused programs, training and networking.​

Science, technology, and innovation (STI) exports are increasingly important to Canada’s long-term competitiveness. Many knowledge intensive firms face limited domestic demand and must look abroad to grow.​

Innovation driven exporters may:​

• participate in global value chains as specialized suppliers​
• license technology or form joint ventures with international partners​
• use international research and development (R&D) collaboration to accelerate development and reach customers faster​

Our partners offer programs that support innovators in commercializing and scaling internationally including:

• Canadian Technology Accelerators: Support and connections for companies with an existing technology in 12 global tech hubs.
• Global Innovation Clusters: Drives collaboration between industry, academia, and government to accelerate innovation, scale businesses, and strengthen Canada’s global competitiveness in key sectors.
• National Research Council’s Industrial Research Assistance Program (NRC IRAP): Provides funding, advisory services, and technical expertise to help small and medium-sized businesses in Canada develop, innovate, and bring new technologies to market.
• Innovation Partnership Program: Helps Canadian SMEs build collaborative research and development partnerships with organizations in select partner countries. It supports activities like matchmaking, trade missions, and joint R&D projects aimed at commercializing new or improved technologies for global markets.
• CanExport Innovation: Provides funding to help Canadian organizations establish and formalize new international R&D partnerships for a specific technology. The program covers a share of eligible partnership-development costs so innovators can negotiate, structure, and sign collaborative agreements with foreign partners.

Exporting services presents different considerations than exporting goods and often involves additional regulatory, tax, and data‑related obligations across borders.

Goods exporters manage:

• physical production
• packaging
• logistics
• customs
• product standards

Service exporters deliver expertise or digital solutions across borders. In target markets, they may need to address: 

• Visas
• professional credentials
• local delivery norms
• basic tax exposure or data protection requirements

Many businesses export both goods and services. For example, a manufacturer might sell equipment (goods) alongside installation, training, and maintenance (services), while a consulting firm may deliver services digitally but ship physical materials as part of its solution.​

• Remote or digital delivery, such as online consulting, software or training​ (often subject to cross‑border data and privacy obligations)
• Local presence through subsidiaries or partnerships in the target market​ (which can trigger local licensing and tax requirements)
• Hybrid models combining remote delivery with in‑person visits​

The guide is designed so you can start where you are.​

• New to exporting: Begin with this chapter and Chapter 2 (Is your business ready?) to assess readiness.​
• Already exporting: Focus on later chapters covering planning, market research and entry, finance, or optimization.​
• Focused on risk, compliance, or technology: Go directly to those dedicated sections and return to planning as needed.​

Each chapter includes:​

• plain language explanations, terms, and examples​
• links to related tools (checklists, templates, calculators, glossaries)​
• an additional training subsection with relevant learning options​

You can navigate using the table of contents, search, and cross‑references between sections.

Real-world examples from Canadian exporters illustrate how the exporting concepts in this guide apply in practice.​ Each success story highlights what worked and at least one challenge the company faced. For example:

• market research
• compliance
• logistics or financing
• how it was addressed

This helps set realistic expectations rather than assuming a friction‑free path.

The Export success stories collection includes examples from different industries and regions, such as:​

• a small technology company that worked with our Trade Commissioners to validate demand and expand internationally​
• a mid‑sized manufacturer that shifted from price‑pressured domestic sales to higher‑value export niches​

These stories can help you benchmark your own journey and identify practical next steps.​

The following training options support the skills introduced in this chapter, such as assessing readiness, understanding global trends and risks, and making early decisions.​

Learning resources ideal for businesses considering exporting:​

• Adapting products and services: Helps you assess whether your offerings fit international customers and identify changes may be needed​.
• Intellectual property protection: Helps you recognize common intellectual property (IP) risks when going global and take early steps to protect your ideas and brand​.
• Selecting a market entry strategy: Helps you compare common entry options and decide which best fits your objectives and risk appetite​.
• Analyzing and mitigating commercial risk : Helps you use practical methods to identify key risks and develop mitigation plans​.

The resources are available through the EDC | FITT FITTskills Lite Learning Series. 

On‑demand courses that build directly on this chapter:​

• Creating an export plan: Helps you set objectives, prioritize markets and draft a basic export plan based on your readiness and goals.​
• International business ethics and compliance: Helps you understand core ethics and compliance concepts, reinforcing this chapter’s discussion of global rules, responsible business conduct (RBC) and environmental, social, and (corporate) governance (ESG) expectations.​

These courses are available through the EDC | FITT International Trade Learning Centre.

For a structured, end-to-end way to decide whether exporting is feasible for your business now:​

• FITTskills – Feasibility of International Trade: Helps you conduct situational analysis, cost/pricing evaluation, and risk management – closely aligned with this chapter’s focus on export potential, readiness and the global business environment.

This course is available through the EDC | FITT International Trade Learning Centre.

Visit the TCS Exporter training hub, where we bring together additional courses, webinars, and learning resources from partners such as EDC, BDC, and FITT, organized by topic and stage of your export journey.​

The tools and resources in this section are designed to help you apply the key ideas from Section 1. Use them to assess your starting point, understand the export environment, explore Canada’s export support network in more detail.​

The Business Benefits Finder is a Government of Canada tool that helps businesses quickly identify relevant funding, tax credits, expert advice, and other support programs across federal, provincial and territorial governments. It:

• covers grants, loans, wage subsidies, tax incentives, advisory services, accelerator and incubator programs, and export‑oriented supports
• uses a short questionnaire (location, size, sector, goals) to generate a tailored list of programs rather than a generic directory
• includes support for activities such as R&D, commercialization, exporting, hiring and training, digital adoption, and green initiatives
• provides high‑level eligibility criteria and links you directly to each program page to confirm details and apply