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ARTICLE · 18 DECEMBER 2023

Supply Chains, 'Friend-shoring' And Cooperation With Allies

Osler, Hoskin & Harcourt LLP
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Canadian businesses have experienced supply chain challenges since the beginning of the COVID-19 pandemic.

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John Valley
John Valley
Alan Kenigsberg
Alan Kenigsberg
Chelsea Rubin
Chelsea Rubin
Jesse Goldman
Jesse Goldman
Matthew Kronby
Matthew Kronby
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Canadian businesses have experienced supply chain challenges since the beginning of the COVID-19 pandemic. Although some of these abated in 2023, new challenges have emerged as a result of ongoing geopolitical instability, inflation, monetary policy and other social and economic factors. In response, Canada has emphasized policy and regulatory measures intended to both strengthen domestic supply chains and protect those supply chains from overreliance on offshore sources necessary for the functioning of Canada's economy (known as "onshoring"). Canada has also sought to strengthen relationships with strategic allies and to make a conscious effort to build supply chains through the economies of other democracies – a concept referred to as "friend-shoring." Friend-shoring is a key element of the federal government's policy. Businesses should expect it to continue to be a priority in 2024.

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