Jump to:
Overview
Canada has a mature and innovative advanced manufacturing sector, with strengths in areas including automotive, aerospace, clean technology and industrial automation. Strong investment in research, technology adoption and workforce development is helping manufacturers improve productivity and accelerate the transition to more advanced production methods.
UK businesses are recognised in Canada for their engineering expertise, innovation and specialist manufacturing capabilities. As Canadian manufacturers look to modernise operations, adopt new technologies and address skills and productivity challenges, opportunities exist for UK companies supplying advanced equipment, digital solutions and technical services.
Although Canada has a well-established manufacturing sector, domestic businesses continue to look for international expertise, technologies and solutions that can enhance productivity, strengthen supply chains and support innovation, creating opportunities for UK exporters across the manufacturing value chain.
Trade agreements with Canada
The UK has 2 Free Trade Agreements (FTAs) with Canada:
- the UK-Canada FTA which entered into force on 1 April 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam), which entered into force between the UK and Canada on 1 September 2026
The UK-Canada FTA should be read in conjunction with the EU-Canada Comprehensive Economic and Trade Agreement (CETA) because the UK-Canada FTA incorporates provisions of the EU-Canada CETA. The following Parliamentary Report provides information about significant differences between the two.
The UK-Canada FTA will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 1 September 2026, CPTPP is in force between the UK and:
- Australia
- Brunei
- Canada
- Chile
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with these countries.
Doing business in Canada
Canada is the world's second-largest country by land area and is home to more than 40 million people. It offers a stable political and economic environment, supported by strong and long-standing trade and investment ties with the UK.
It is a highly developed and competitive market with business practices that are familiar to many UK companies. Businesses and consumers place a strong emphasis on both value and quality, meaning that innovative products, services and business models can often help UK firms stand out from the competition.
In relation to the existing trade relationship, Canada is the UK's 15th largest export market. Total UK exports to Canada amounted to £19.6 billion in the 4 quarters to the end of quarter 1 2026, an increase of 8.4% compared with the previous year. Canada was also the UK's 14th largest trading partner, with total UK-Canada trade in goods and services reaching £35.3 billion over the same period.
Canada is a federal state. Your business in Canada will be subject to both federal and provincial or territorial laws. While English common law is the basis of law in most provinces and territories, French civil law is the basis of law in Québec. This can make doing business complicated for first-time exporters to the country.
For the latest statistics on trade and investment between the UK and Canada, see the Trade and investment factsheets on GOV.UK.
Relevant CPTPP provisions for UK businesses
Exporting goods to Canada
Many advanced manufacturing products exported from the UK can already enter Canada tariff-free under the existing UK-Canada Trade Continuity Agreement. This includes a wide range of manufactured goods, components and industrial equipment that would otherwise face import duties.
These products can also benefit from preferential tariff treatment under CPTPP. For advanced manufacturing businesses with complex international supply chains, CPTPP may offer additional flexibility through its Rules of Origin provisions, allowing inputs from other CPTPP member countries to count towards origin requirements. Businesses can therefore choose the agreement that best suits their product and supply chain, balancing tariff benefits against the administrative requirements of demonstrating origin.
Businesses can use the Check How to Export Goods tool to identify product-specific tariff rates, customs procedures and regulatory requirements for exports to Canada. For more information on tariff rates, visit Canada’s Tariff Schedule.
New rules of origin options
The UK's accession to CPTPP gives exporters to Canada an additional route to qualify for preferential tariff treatment. To benefit from reduced or zero tariffs, goods must meet the rules of origin requirements of the trade agreement being used.
From 1 September 2026, UK businesses trading with Canada can choose whether to use the UK-Canada TCA or CPTPP, depending on which agreement offers the most commercially advantageous route for their product.
For advanced manufacturing businesses, this flexibility can be particularly valuable. Manufacturing supply chains often involve components sourced from multiple countries. Under CPTPP, materials and components sourced from other CPTPP member countries can be counted towards origin requirements through cumulation provisions.
This may make it easier for complex manufactured products to qualify for preferential tariffs when exported to Canada.
For example, a UK-manufactured products that incorporates parts from Japan and Malaysia may still qualify as originating under CPTPP if it meets the relevant product-specific rules. This could allow the product to benefit from CPTPP preferential tariff treatment when exported to Canada.
The ability to choose between the TCA and CPTPP, combined with CPTPP's more flexible cumulation provisions, provides UK manufacturers with additional options to structure supply chains and maximise tariff preferences when exporting to Canada.
Find more information on the dedicated rules of origin requirements and how to claim for preferential tariff treatment guides.
Advance rulings
An advance ruling is a legally binding decision from a customs authority that a trader can request before importing or exporting their goods. Under CPTPP, countries have agreed to offer advance rulings on the tariff classification of the good, the origin of the good, and the value of the good. Countries have agreed to issue these rulings within 150 days and once issued, these rulings will be valid for a minimum of 3 years.
Advance rulings can save you money by giving you legal certainty over the tariff classification, origin, or value of your good before you move your good internationally as well as reducing the risk of your goods being denied preference.
You can view information on how to obtain an advance ruling in the UK.
Release of your products through customs
Under CPTPP, countries have agreed to offer simplified customs procedures that enable the efficient release of goods in a manner that aims to reduce costs for traders. These include:
- enabling traders to submit information electronically prior to the physical arrival of goods
- enabling goods to be released without temporary transfer to warehouses
- allowing the release of goods prior to the final determination of customs duties, taxes, fees, and charges
Provided the goods meet all the requirements, CPTPP countries aim to release your goods within 48 hours of arrival.
CPTPP countries also offer expedited customs procedures for express shipments, which means that such shipments will be released within 6 hours after arrival provided all customs documentation has been submitted.
Trading digitally
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
The free flow of trusted data
The UK and other CPTPP countries have committed to not imposing unjustified data localisation requirements. CPTPP countries have also committed to not imposing unjustified server localisation requirements.
This means you do not have to bear additional costs associated with storing or processing data overseas, nor do you have to set up new facilities in another country. These costs are particularly prohibitive for small and medium-sized enterprises.
Paperless trading
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
For more information, please see our trading goods and services digitally guide.
Temporary entry for skilled business persons
Business mobility provisions in trade agreements support the temporary movement of professionals to deliver services, negotiate commercial opportunities and undertake investment activities in person. They help reduce barriers to business travel and provide greater certainty for companies operating internationally.
CPTPP enhances temporary entry provisions between the UK and Canada, providing additional flexibility and certainty for eligible business travellers. These commitments can support UK businesses seeking to:
- establish commercial relationships
- negotiate contracts
- meet customers
- distributors and business partners
- deliver services
- manage investments and deploy skilled personnel
Under CPTPP, Canada has commitments covering the following categories of business person.
Business visitors
Permitted to stay for up to 6 months, with the possibility of extension, representing an increase from the previous 90 days in any 6-month period.
Intra-corporate transferees
Executives, managers, specialists and certain management trainees transferring within a company for up to 3 years, with the possibility of extension. Accompanying spouses may also be eligible to work during their stay.
Investors
Individuals establishing, developing or administering a substantial investment in Canada may be eligible for stays of up to one year, with the possibility of extension. Accompanying spouses may also be eligible to work.
Independent professionals and technicians
Eligible professionals and technicians can obtain temporary entry for up to one year, with possible extensions, subject to qualification and experience requirements. Accompanying spouses may also be eligible to work.
Compared with the UK-Canada TCA, CPTPP goes further by extending the permitted stay for business visitors and providing dedicated commitments for investors, professionals and technicians. It also includes enhanced provisions for intra-corporate transferees and allows eligible accompanying spouses of certain businesspersons to work while in Canada.
Entry to Canada remains subject to applicants meeting the relevant immigration requirements and eligibility criteria established by the Government of Canada. For full details on visa, work permit and entry requirements, visit Government of Canada immigration and citizenship.
For more information, see our travelling to Canada for work guide.
Conformity assessment
UK-based conformity assessment bodies will be eligible to apply to carry out conformity assessments against Canadian regulations. This means UK manufacturers could have their goods assessed in the UK against Canadian regulations prior to exporting, rather than having to send samples to Canada to be assessed there.
This could reduce the time and costs compared to having conformity assessments take place in Canada, which could especially benefit SMEs for whom the costs of overseas testing can be prohibitively expensive. These bodies must be accredited by the relevant government-designated organisation, which for pharmaceuticals and medical devices is Medicines and Healthcare products Regulatory Authority (MHRA).
For more information on the conformity assessment and how the UK-Canada FTA and CPTPP could make it easier to have your goods assessed against Canadian regulations, check out our Canada product regulation and testing guide.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
Useful resources
You can find more information about export opportunities, business culture and any existing trade barriers on our market guide.
Prior to export, you must be aware of local regulations and import conditions in Canada that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
To seek further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, you can use the following contacts:
- BIST's Export Support Service International Markets team
- get in touch with BIST at the local British Embassy
- get in touch with the British Chamber of Commerce
To see information on political, economic and security risks when trading with Canada, please see:
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
No investment and/or business decision should be made solely on the basis of information presented in this document. It is recommended that an independent due diligence investigation is conducted before entering into engagement with any individual, business or other organisation mentioned.
The Department for Business, Innovation, Science and Trade accepts no responsibility for any loss or damage caused to any person as result of any error, omission, inaccurate or misleading statement in this document.
The accuracy, completeness or timeliness of the content of any website mentioned in this document is not guaranteed in any way, implied or explicit.
