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Overview
Canada has a sophisticated and internationally connected financial services sector, underpinned by a stable regulatory environment, well-capitalised financial institutions and strong adoption of digital technologies.
The sector spans banking, insurance, asset management, fintech and capital markets, and continues to invest in innovation, cybersecurity and digital transformation to improve customer experience and operational efficiency.
UK businesses are recognised in Canada for their expertise in financial and professional services, financial technology, risk management and regulatory compliance. As financial institutions seek to modernise legacy systems, strengthen cyber resilience and respond to evolving customer expectations, opportunities exist for UK businesses offering digital solutions, specialist advisory services and innovative financial technologies.
While Canada has a strong domestic financial services industry, businesses continue to seek international partners that can help enhance competitiveness, improve efficiency and support innovation. This creates opportunities for UK exporters across a range of financial and professional services subsectors.
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
Financial services chapter
CPTPP includes a standalone financial services chapter. Various commitments in the chapter go beyond the General Agreement on Trade in Services (GATS) and create the conditions, across regulatory regimes, for financial services firms to have confidence when entering and operating in CPTPP parties’ markets.
The chapter ensures that firms can provide new products and innovative services to CPTPP markets on a level playing field with domestic firms. It commits parties to promoting regulatory transparency in financial services.
CPTPP provisions also help encourage more dynamic business models, such as provisions on the performance of back-office functions, avoiding restrictions on residency requirements, and measures that help liberalise cross-border trade including to protect the free flow of financial information.
CPTPP also allows portfolio managers, in which the UK has historic strengths, to manage funds across the world from the UK. The UK’s position as a leading global asset management hub supports the wider financial services ecosystem by encouraging other sectors, such as trading and investment banking, to conduct their activities in the UK.
Similarly, all CPTPP members are committed to allowing data to move freely in both directions. They are committed to not imposing:
- unjustified data localisation requirements, where data is required to be stored in a specific country, often for security reasons
- unjustified server localisation requirements, where a business is required to establish facilities in a specific country
For further information, please see our trading goods and services digitally guide.
While CPTPP supports greater market access and regulatory transparency for financial services firms, Canada retains the right to maintain certain measures in areas such as banking regulation, deposit-taking activities and payment systems. For more information see Canada’s Financial Services Non-Conforming Measures.
Digital trading
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.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information. You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
Protected source code
You are not required to share or transfer your source code or algorithm as a condition to do business in CPTPP markets. This provides protection and guarantees to your technology and services that rely on source code or unique algorithms, especially from disclosing commercially sensitive information to your competitors as a condition to do business.
There are some exceptions where you might be required to disclose information, including as part of an investigation, inspection or a juridical proceeding. This protection does not extend to when you are accessing a government-owned or government-controlled network, including Central Banks, or in relation to measures on financial institutions markets.
Protection for products using cryptography
To note, the following information relates to ‘Information and Communication Technology (ICT) Products that Use Cryptography’ Section A which is found in Annex 8-B to CPTPP Chapter 8: Technical Barriers to Trade, rather than CPTPP Chapter 14: Electronic Commerce.
Encryption is critical to shielding citizens and companies from a variety of threats including fraud, hacking and corporate espionage. ICT products that use cryptography ensure that the information transmitted or stored is processed securely. This can be done by requiring user authentication and permitting access of the information only to authorised users.
Businesses selling ICT products will be able to enter the markets of CPTPP countries, confident that they will not be required to transfer or provide access to proprietary information related to cryptography, in order to comply with technical regulations or conformity assessment procedures.
They will also not have to partner or co-operate with another person or use a particular cryptographic algorithm to sell commercial ICT products in these countries.
Any requirements relating to the use of ICT products in government networks, financial institutions and markets are out of scope and are still permitted by CPTPP countries.
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.
Investment
Canada is one of the world's most attractive destinations for financial services investment, supported by a stable banking system, a transparent regulatory environment and a growing fintech ecosystem.
For UK financial services and fintech firms, CPTPP supports investment by providing:
- non-discriminatory treatment for covered investments
- greater legal certainty through transparent investment rules and protections
- support for capital transfers related to investments
- a modern framework that complements CPTPP commitments on financial services and digital trade
CPTPP provides UK investors with greater certainty when establishing, expanding or acquiring businesses in Canada.
CPTPP does not prevent Canada from maintaining certain measures in sensitive areas. In financial services, Canada retains policy flexibility in areas including banking regulation, deposit-taking activities, payment systems, housing finance programmes and certain provincial and territorial regulatory measures. For more information see Canada’s Financial Services Non-Conforming Measures.
For more information, see our investment 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.
