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Overview
Canada offers opportunities across the food, drink and agri-tech sectors, supported by a large and affluent consumer market, a globally significant agricultural industry and a strong appetite for innovation. Consumer demand is shaped by changing lifestyles, multicultural tastes and growing interest in quality, sustainability and value, while Canadian producers continue to invest in technologies that improve productivity, profitability and environmental performance.
UK food and drink products are well regarded in Canada for their quality, heritage and innovation. Opportunities exist across a range of categories including confectionery, baked goods, beef, private label, innovative snacking, premium grocery, alcoholic and non-alcoholic beverages, and health-focused functional products, particularly where UK businesses can offer a distinctive proposition or clear added value.
Canada is also one of the world's leading agricultural producers and continues to invest in agricultural innovation to address labour shortages, improve productivity and strengthen international competitiveness. This creates opportunities for UK agri-tech companies across areas such as precision agriculture, automation, robotics, animal health, controlled environment agriculture and climate-smart farming technologies.
While the Canadian market is highly competitive, there is strong demand for products and technologies that complement domestic production, address industry challenges and respond to evolving consumer preferences. Opportunities are strongest for UK businesses that can demonstrate quality, innovation, commercial value and a clear understanding of Canadian market requiremen
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.
Market opportunities
Retail food
Canada’s grocery market is dominated by a handful of national retailers, but regional chains, independents and speciality stores remain important routes to market, particularly for imported and premium products. These channels can help UK exporters establish a presence before expanding nationally and taking on the costs and commitments associated with major retail listings.
Canadian consumers generally view UK food products positively, creating opportunities in areas such as speciality foods, health and wellness, free-from products, non-alcoholic beverages, private label and value-added products. Most exporters work with a Canadian importer or distributor to manage regulatory requirements, retailer relationships, logistics, labelling and market entry.
Success often requires investment in promotions, including trade shows, digital marketing and in-store activity. Building strong relationships, maintaining consistent supply and demonstrating long-term commitment are crucial to sustainable growth in Canada.
Retail drink
Alcohol sales in Canada are regulated provincially, mainly through government liquor boards, although retail models vary by province. Most UK exporters need a local agent to manage listings, tender applications and relationships with provincial buyers.
UK whisky and gin benefit from strong consumer recognition, while opportunities also exist in wine and competitively priced products that meet provincial requirements. Success typically depends on ongoing marketing support, strong buyer relationships and a long-term commitment to the market.
Foodservices
Canada’s foodservice sector is moving from post-pandemic recovery into a period of moderate growth and can offer a valuable route to market for UK exporters, particularly for premium products with strong provenance and distinctive flavours.
Access is typically through national or regional distributors, which supply restaurants, hotels, institutions and caterers, making distributor partnerships key to market entry. Exporters should demonstrate suitability for foodservice through appropriate pack sizes, reliable supply, shelf life, ease of use and value for money. Product demand is often driven by chef preferences, menu trends and distributor category strategies.
Agri-tech
Canada is a major agricultural producer, creating opportunities in areas such as precision agriculture, robotics, automation, animal health, controlled environment agriculture and climate-smart farming. Shared challenges with the UK, including labour shortages, sustainability targets and productivity pressures, support demand for innovative agri-tech solutions.
Success in Canada depends on demonstrating a clear return on investment, providing evidence of results in comparable conditions and building strong, long-term relationships with local partners.
Relevant CPTPP provisions for UK businesses
Exporting goods to Canada
Many food and drink products exported from the UK can already enter Canada tariff-free under the existing UK-Canada Trade Continuity Agreement (TCA). This includes a range of products such as chocolate, confectionery, and baked goods that would otherwise face import tariffs.
For example:
- chocolate: tariffs of 6% are eliminated.
- confectionery: tariffs of up to 10% are eliminated.
- bread, pastries and biscuits: tariffs of up to 15% have been eliminated.
These products can also benefit from preferential tariff treatment under CPTPP. For food and drink businesses with international supply chains, CPTPP may offer additional flexibility through its rules of origin provisions, allowing ingredients and inputs sourced from other CPTPP member countries to count towards origin requirements. This can help businesses diversify sourcing options while still qualifying for preferential tariff treatment.
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 should assess both the TCA and CPTPP to determine which route offers the most advantageous outcome for their exports.
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.
Cheese
Under CPTPP, Canada operate 3 different tariff rate quotas (TRQs) for cheese which are shared between all current CPTPP parties:
- cheese of all types – applies to all cheese. In 2025 the volume of this TRQ is 3,698 tonnes (growing to 4,126 tonnes by 2037)
- mozzarella and prepared cheeses – applies to mozzarella and grated or processed cheeses. In 2025, the volume of this TRQ is 2,958 tonnes (growing to 3,300 tonnes by 2037)
- industrial cheese – applies to any cheese imported in bulk and used in further processing to produce a product other than cheese (for example, frozen pizza). In 2025, the volume of this TRQ is 8,135 tonnes (growing to 9,076 tonnes by 2037)
View more information on how Canada’s CPTPP TRQs work, including the requirements for importers to obtain licenses, on the Canadian Government website.
Alternatively, UK cheese exporters can export cheese to Canada tariff free, if the importer is a license-holder under the non-EU sources reserve of Canada’s WTO cheese quota. Read more information in the Notice to exporters 2024/01: update on UK’s cheese exports to Canada.
There is no outward tariff rate quota for cheese in the UK-Canada TCA. For more information on preferential tariffs under the UK’s trade agreements with Canada, check out our Canada tariffs and customs guide.
New rules of origin options
The origin of a good is where it has been grown, produced or manufactured, and is not necessarily the country where the good is shipped or bought from. For goods to receive a preferential tariff, the goods must meet the specific rules of origin for that agreement.
UK-Canada FTA and CPTPP have different rules of origin that must be met to access the preferential tariffs offered by each agreement. You are able to choose which agreement you want to use when seeking to access preferential tariffs.
Some food and drink products, such as non-processed foods, may be straightforward in proving their origin in the UK. For example, vegetables grown in the UK or eggs laid in the UK are likely to be wholly originating and can access preferential tariffs under both trade agreements. For processed food and drink items, such as ready-meals or cereals, it will need to be determined if enough ingredients are suitably sourced to meet rules of origin.
Under CPTPP, goods sourced from other CPTPP countries count towards products meeting CPTPP rules of origin and receiving CPTPP preferential tariffs. For example, for confectionary made in the UK from sugar from Malaysia and flour from Canada the manufacturer could count the sugar and flour components as originating in the UK, making it easier to access receiving preferential tariffs when exported to all CPTPP countries (not just Malaysia or Canada).
For more information on the rules of origin requirements and how to claim for preferential tariff treatment, see our rules of origin explainer.
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.
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.
Customs authorities in the UK and the other CPTPP countries have created webpages to share information about import and export requirements digitally, providing you with relevant information instantly, that you can access on their websites.
For more information, you can view guidance on import and export requirements for the UK.
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.
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.
Sanitary and phytosanitary (SPS) measures in Canada
The SPS chapter contains commitments on greater transparency and information sharing on animal and plant health and food safety that will help UK businesses better understand how to access their markets. The requirement for CPTPP members to be transparent in how they undertake import checks, and for them to be carried out without undue delay, will help to ensure smoother and more timely trade.
The chapter also establishes dialogue structures to resolve technical issues and provide routes to ease SPS related market access issues.
The agreement provides an opportunity for cooperation on SPS export certification including a commitment to work together to progress the use of electronic certification, which will. help to reduce administrative processes for businesses.
Find more information on SPS measures under CPTPP.
Geographical indications
Geographical indication (GI) protection is a collective intellectual property right for food, wine and spirit drink names linked to places. A GI guarantees a product’s characteristics or reputation, authenticity, and origin, and protects the product name from misuse or imitation.
The existing UK-Canada TCA includes protection for the following UK GIs, including ‘transborder GIs’ that relate to the territory of both Northern Ireland and the Republic of Ireland:
- Irish whiskey / Uisce Beatha Eireannach / Irish Whisky
- Irish cream
- Scotch whisky
The provisions in CPTPP further ensure that CPTPP countries provide open and transparent procedures when protecting GIs under domestic laws and regulations. This includes considering whether a term is a commonly used descriptive term in that market, and providing procedures to oppose and cancel GIs.
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.
