Countries Turn to Canada as Trade with Russia Halts

Brazil, one of the world's largest agricultural producers, fertilizes its crops with potash, mainly from Russia and Belarus. When the two countries virtually stopped exporting potash during the Ukraine conflict, Brazil sought help from resource-rich Canada.

The agriculture minister of Brazil, Tereza Cristina has said in a statement that she has secured an undisclosed increase in exports of potash from Canada after meeting government officials and industry executives. It also imported 36% of its potash from Canada.

Increasing interest in Canada's potash and other commodities reflects how the conflict in Ukraine has disrupted and rebalanced global trade flows. Buyers looking for alternatives to restricted commodities in Russia are also looking for Brazil for oil, South Africa for platinum and Argentina for wheat.

Even countries with sufficient domestic crops are seeking Canada for additional imports to build reserves as insurance against further geopolitical or climate disruptions. The president of the USA, Joe Biden has also warned about the global food shortages, and the issue came up as a source of concern at meetings with leaders of the Group of Seven leading meetings.

Despite these challenges, the country and many of its commodity producers are still in a plum position. Higher oil and potash prices increase profits and improve the government's balance sheet.

Canada has the fourth-largest oil reserves in the world. Producers in Alberta, where most of the oil is present, transport almost all of their oil to US refineries through pipelines and rail.