The governor of the Bank of Canada says Canadian exporters are losing out on up to $40 billion in sales to the United States – compared with what could be historically expected from the recovery south of the border.

Stephen Poloz says that a “wedge” has developed between sales levels in the U-S that Canadian exporters would historically expect – and what is actually being delivered.

And Poloz says the difference will not be eliminated until underperforming industries improve their competitiveness – or new firms surge forward.

The central banker says he still expects Canadian exporters to benefit from the expanding U.S. recovery – which is starting to fire on all cylinders.

But he says Canada needs exports to increase – in order to sustain this country’s recovery.