Canada is at the cusp of a new world trade order in which countries are diversifying their suppliers, especially for critical resources. Trade protectionism, wars, and geopolitical tensions have created the need for stable trade partners. With tensions around the United States’ attempt to acquire Greenland, the Venezuela oil crisis, and war-like situations between the US and Iran, minerals, oil, and gas have become the center point of trade issues. Canada is at an advantageous position, with its rich energy and mineral resources and stable political environment.
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Canada’s resource advantage over others
Canada is an export-led economy, with exports contributing 32.4% to the gross domestic product (GDP) in 2024, as per World Bank data. The country is significantly dependent on the United States, which accounts for 73.5% of its total exports. Canada saw a shift in exports, as Canadian exports to the US markets fell and those to non-U.S. markets rose in 2025.
Trump tariffs have encouraged Canada to diversify its non-US exports. It is looking to leverage its resource advantage and stable political environment to establish new trade agreements. Canada is the world’s
- Second-largest uranium producer
- Fourth-largest oil and gold producer
- Fifth-largest natural gas producer
However, most of the oil is landlocked in Alberta and Saskatchewan, which have limited offshore export potential. They are well connected through pipelines to the United States. Canadian Prime Minister Mark Carney is looking at establishing trade deals with China and India to export oil, natural gas, and uranium.
Canada’s biggest roadblock is the lack of offshore infrastructure that limits its export potential. Take the case of the Trans-Mountain Expansion Project (TMX), which was originally announced in 2013. Construction began in 2019, and the pipeline came online in May 2024. The government is now investing in the trade and transportation sector and aims to double non-US exports.
These infrastructure projects could help Canadian energy and mining companies unlock new export capacity and get better pricing terms. It is a good time to invest in resource stocks for the long term, as they could be good dividend payers in the long term.
Stocks to benefit from Canada’s resource advantage
The key beneficiaries of Canada’s resource exports could be Cameco (TSX: CCO), Canadian Natural Resources (TSX: CNQ), Tourmaline Oil, Lundin Gold, and Suncor Energy. All of them have some of the largest resource reserves and the lowest production costs. This cost advantage could help them stay competitive in global markets.
Cameco
Cameco is the largest producer of uranium in Canada, having mines in Canada, the US, Australia, and Kazakhstan. It not only mines uranium but refines it into uranium fuel and provides operations and maintenance of nuclear reactors. The stock jumped more than 50% in December 2025 and January 2026 after the company partnered with Brookfield Asset Management and the US government to deploy Westinghouse nuclear reactor technologies in the US and abroad. The company’s strategy is to build long-term contracts with base-escalation pricing and market-related pricing mechanisms. This helps it benefit from rising commodity prices and protect it from downside.
Canadian Natural Resources
Canadian Natural Resources has the largest oil sands reserves in Canada and a production cost of mid-$40/barrel. Its low maintenance, slow-depleting resources, and diversified portfolio of crude, synthetic oil, and liquified natural gas (LNG) give it flexibility to adjust product mix to commodity prices. The energy producer is acquiring more oil and gas reserves.
Canadian Natural Resources is a dividend king, with a 25-year history of growing dividends at a 21% average annual rate. This shows its strong balance sheet and financial discipline to navigate commodity price volatility.
Other stocks
Lundin Gold is not the largest gold miner, but it has been growing its production rapidly. Among all Canadian gold miners, it has a lower all-in-sustaining costs (AISC). It will benefit from increasing gold exports and rising gold prices.
Tourmaline Oil has large natural gas reserves in Alberta and has seen an increase in transportation costs as it sells more LNG outside Alberta. It could benefit from the increasing demand for LNG. Similarly, Suncor Energy’s integrated oil business could make it a beneficiary if oil exports diversify, as it could get a better price for its oil in non-US markets.
