09:28 AM EDT, 06/25/2025 (MT Newswires) -- Canada wants to diversify trade flows in the face of United States protectionism, said Scotiabank.

Doing so could bolster investment and connect firms with international markets that demand the goods Canada can supply, wrote the bank in a note to clients.

Yet this shift won't be easy, fast, or cheap, stated Scotiabank. With over 70% of goods leaving the country shipped by road, rail or pipeline, Canadian trade is deeply integrated with the U.S.

Redirecting trade flows would require reshaping trade networks. The bank's analysis shows that for every 10% share of trade currently that gets redirected from the U.S. elsewhere, the share of goods leaving the country from ports and airports increases by 5% and 3%, while the share crossing the border with the U.S. by road, rail and pipeline would decline by 8%.

Supporting this shift means investing in marine and air infrastructure, and strengthening east-west investments in rail, road and intermodal capacity, pointed out Scotiabank. Yet current federal spending estimates forecast road and rail to account for over 80% of infrastructure capital expenditure in the coming 50 years.

A rebalanced portfolio is needed, along with increased spending, noted the bank. Public support -- including the new $5 billion Trade Corridors Fund pledged by the federal government -- hasn't been able to keep up with existing demand, let alone support growth.

Tackling this issue would require private and public sector pushes to invest additional capital, advance deregulatory efforts, and overcome the inefficiencies causing national headaches, according to Scotiabank.