Can Asian countries replace the U.S. as B.C.’s largest trading partner?

Do strengthened trade relationships with Japan, Malaysia, and South Korea have the potential to offset the decline in trade between B.C. and the U.S.? If you ask David Eby, he would almost certainly say “yes.”

Last month, the premier returned from his trade mission, which had led him and his entourage of ministers, business representatives, and researchers from local B.C. universities to visit exactly these three countries.

Eby said the trade mission’s goal was to “strengthen partnerships, increase investment, diversify trade and create good jobs for British Columbians” and to “become less reliant on the United States.”

During the mission, he visited the international EXPO 2025 in Osaka, Japan, met with representatives of Mitsubishi and Nippon Steel, discussed their response to tariffs with several Malaysian ministers, and celebrated the anticipated first shipment of LNG to South Korea.

The premier’s trade mission is “bringing back new opportunities to grow a stronger, more diversified economy and create good jobs throughout the province,” a government press release said.

Trade mission accomplished?

So, was the trade mission then a complete success? Can it compensate for the losses in trade with the U.S.?

“Success would mean concrete deals, not just MOUs (Memorandum of Understanding),” explained Vina Nadjibulla, vice-president, research and strategy at the Asia Pacific Foundation of Canada.

“While such visits are critical to open doors, long-term success requires follow-through mechanisms and a focus on Asia that is sustained.”

After all, she explained, more than half of B.C.’s exports only know one destination.

53 per cent of B.C.’s exports go to the U.S.

According to B.C. official trade statistics, 53 per cent of all B.C’s commodity exports went to the U.S. in 2024, totaling $28.9 billion in physical goods. Another $11.1 billion of exported services went to the U.S.

The U.S. is also the biggest source of imports into B.C., with over 35 per cent of imported goods and 59 per cent of imported services originating from the southern neighbour.

On the other hand, $22.4 billion in merchandise exports are currently directed to Indo-Pacific markets. This represents more than 41 per cent of the province’s total merchandise exports in 2024, according to the statistics.

Even though the numbers show that reliance on trade with the U.S. is staggering, B.C. is well-positioned to increase trade with other partners overseas. And certainly, the geographic position helps to aid this effort, too, says Nadjibulla.

“B.C. is actually the leader when it comes to provinces in Canada on the percentage of trade with the Indo-Pacific markets,” said Nadjibulla.

“So, deepening trade relations with the Asia-Pacific region would make sense, given that B.C. is the gateway to those markets,” she said.

Even though more than half of B.C.’s trade is with its southern neighbour, it’s the province that is least reliant on trade with the U.S., Nadjibulla explains.

“It is much higher for provinces like Alberta, Ontario, and Quebec, where trade makes up over 70 per cent with the U.S.”

First LNG shipment from B.C. leaves for Asian markets

“Premier Eby’s visit is well-timed,” Nadjibulla added. “Asian governments are looking for reliable and trusted partners as U.S.–China competition squeezes their supply chains.”

The first LNG shipment from an LNG Canada facility in B.C. set sail for Asia on June 30.

“[Eby visited] Malaysia, Japan, and South Korea because they are a big part of the investment at LNG Canada,” said Nadjibulla.

The LNG Canada facility in Kitimat is the first large-scale LNG export project in North America with direct access to the Pacific. Malaysia’s Petronas company, Japan’s Mitsubishi Corporation, and South Korea’s KOGAS are large shareholders of the project.

The $40 billion project, the largest private sector investment in Canadian history, fuels more than the expectations of the provincial government to reduce trade reliance on the U.S.

“In making this country strong and ensuring that we are able to stand on our own two feet,” Premier Eby said at a press conference on June 25, the province “has a strong and important role to play.”

In May, Prime Minister Mark Carney said in a news release, “Canada has what the world needs.”

Next to LNG, what does B.C. offer Asian markets?

“There is a desire to deepen the relations, particularly with Japan and Malaysia, but also with Korea because it is an established market for B.C.,” Nadjibulla added.

According to B.C.’s official trade statistics, South Korea is B.C.’s fourth-largest trading partner, just after Japan.

And with the LNG shipment bound to those countries’ shores, the trade volume is only about to increase.

When visiting South Korea, Eby also met with the Korea Gas Corporation (KOGAS) to celebrate the anticipated first shipment of LNG.

Trade with Malaysia amounts to only $162 million in exports in 2024, which is comparatively small compared to $5.6 billion in exports to Japan in physical goods alone.

“Malaysia’s growing appetite for high-quality, sustainable food fits perfectly with B.C.’s strong reputation for clean, safe agricultural products,” said the Consulate General of Malaysia in Vancouver, providing an opportunity in “building a stronger economic partnership between British Columbia and Malaysia”.

Apart from agricultural products, “one of the most exciting opportunities is in clean technology and energy,” argued the Consulate.

“This shared commitment [to tackle climate change] opens the door for collaboration on things like green infrastructure, carbon management, and responsible resource development.”

Trading partners share fundamental values

Malaysia is not alone in pushing forward the sentiment of a shared commitment as the foundation of economic ties.

The Consulate General of Japan in Vancouver points out that “it is important for countries and regions that share fundamental values to pursue stronger economic and human ties.”

As B.C.’s third biggest trading partner, the Consulate said that Japan “strengthening economic ties will enhance cooperation in a wide range of fields, including critical mineral resources, hydrogen and fuel cells, aerospace, agri-food and agri-tech, and clean technologies.”

Additionally, the Kiyukai (Vancouver’s Japanese Business Association) sees “great potential for collaboration in areas such as clean technology, forestry innovation, and sustainable energy.”

The Kiyukai is a non-profit community of Japanese-speaking professionals in B.C.

The organization’s president, Yuki Shiraishi, says that stronger economic partnerships with East Asia would have many benefits, as it “offers new opportunities for investment, market expansion, and skilled talent exchange.”

She also underlines the importance of smaller local businesses. “For our members, this could mean more pathways to grow businesses and contribute to B.C.’s innovation economy.”

Shiraishi names East Asia “a natural and trusted partner for British Columbia,” while “trade tensions with the U.S. pose uncertainties.”

B.C. started years ago to diversify its economy

A closer look at the historic numbers reflecting trade volume with the U.S. shows a clear picture: Trade with the U.S. has been declining, even before Trump’s first term. His second term only accelerates the province’s diversifying process.

As a result, in 2023, the provincial government put in place ‘B.C.’s Trade Diversification Strategy.’

This initiative highlighted Vietnam, Taiwan, and Mexico as countries of opportunity for market diversification.

The premier’s recent trade mission is a continuation of the initiative, explains Nadjibulla, as those relationships are ongoing.

“This trade mission paved the way for a more resilient, diverse, and forward-looking economic relationship that benefits people on both sides, helps position B.C. as a key partner in our region, and supports B.C.’s goal of being Canada’s economic engine,” said the Consulate General of Malaysia.

The Consulate General of the Republic of Korea in Vancouver was not available for comment.