Amid trade war with US, Canada should bank on the economic potential of international students

For decades, international students have contributed to Canada’s research enterprise, workforce development and economic growth.

Now, as Canada navigates strained relations and an escalating trade war with its largest economic partner, it’s important policymakers stop overlooking international education that could be a critical factor in bolstering Canada’s resilience.

Unlike volatile trade agreements and fragile supply chains, international education provides a stable, long-term economic and social advantage.

Contributions

In 2018, international students contributed $21.6 billion to Canada’s post-secondary institutions, local communities and gross domestic product.

By 2022, that figure had grown to $37.3 billion. This represented just over 23% of Canada’s total service exports and around 5% cent of total merchandise exports. The economic contributions from international education outpaced economic contributions from other industries – such as softwood lumber and auto parts.

But their contributions extend far beyond financial impact. International students drive cutting-edge research in artificial intelligence, clean energy, biotechnology and climate science. This strengthens Canada’s innovation ecosystem and global competitiveness.

International students also serve as vital ambassadors – diversifying trade connections and expanding Canada’s global reach.

Despite their undeniable value, recent policy shifts risk undermining Canada’s position as a top destination for global talent. In early 2024, the federal government imposed a two-year cap on new study permits. The cap would mean approximately 360,000 study permits would be approved in 2024 – a decrease of 35% from the previous years.

However, institutions fell well...

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