Sask. tech companies look to EU for growth amid US tariffs

Federal figures suggest Canadian companies are looking to Europe in larger numbers to reduce their reliance on markets and investment in the United States.

In April, 245 Canadian startups showcased their products at the Hannover Messe trade fair in Germany. Saskatchewan Premier Scott Moe also attended the trade show, with hopes of promoting Canadian exports.

Aaron Genest, president of Sask Tech and a manager at Siemens Digital Industries, says that trade with the United States is unlikely to change much, but most new market expansion is coming from Europe. 

"We have a very small tech industry, but we have a lot of tech-enabled industries in Saskatchewan in mining and in agriculture, for instance," said Genest.

"Those companies are seeing lots of opportunities in the EU."

As for the stock market, the Toronto Stock Exchange (TSX) reached a record high on Friday, with technology shares leading the gains. A deadline of Aug. 1 on a Canada-US trade deal continues to loom however, and could be the cause of so many companies turning attention to overseas growth.

Though outcomes are still uncertain, Trump said Friday that his country may not reach a new trade deal with Canada.

Genest says that the Federal and Provincial governments are doing a lot to create buzz for Canadian exports to Europe, and it gives businesses more opportunity.

"There are artificial logistics that could be put in place that would change that equation, and we're seeing that with the Trump government," said Genest.

"They've been clearly making it harder to move things. At some point those artificial barriers overcome the geographical convenience."

CEO and Founder of Saskatoon's River City Innovations Jeff Shirley produces industrial electronic temperature sensors for foreign and domestic markets. He says that he still does business with the US, but in the past two years, he's tripled his business in the Middle East.

With his business having presence in Spain and France as well, Shirley says Canadian companies have developed a reputation of quality and reliability.

"We found the local market here in Canada to be very challenging right now," said Shirley.

"Everybody's concerned about their costs; cost of food, cost of everything going up with policies that have been in place, so we've gone overseas. It's been very successful for us."

Last week, Scott Moe called on all provinces and territories to join Canada's largest barrier-free interprovincial market through the New West Partnership Trade Agreement. Originally created in 2010, the agreement has lower procurement thresholds and fewer exemptions than the Canadian Free Trade Agreement.