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Overview
Canada is an attractive destination for life sciences exports and investment. It remains a significant export destination for products such as medical devices and pharmaceuticals, especially post-pandemic.
Canada’s life sciences sector boasts a strong R&D environment, skilled workforce and significant collaboration towards innovation, bringing together educational institutions, research organisations and hospitals. Canada has placed significant focus on post-pandemic investment in capacity and preparedness, including in vaccine manufacturing and biomanufacturing.
Canada and the UK have jointly established a Biomanufacturing and Life Sciences Strategy, announced in June 2023, aimed at strengthening domestic biomanufacturing capabilities and improving pandemic preparedness in both countries.
There are strong bilateral opportunities in joint biomanufacturing, supported by government investment and collaboration on emerging therapies. Additionally, both countries’ strengths in clinical research and regulatory innovation create a pathway for faster cross-border trials and accelerated access to new treatments.
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 life sciences 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 pharmaceuticals, medical devices, diagnostic equipment and laboratory instruments that might otherwise face import duties.
These products can also benefit from preferential tariff treatment under CPTPP. For life sciences businesses with international supply chains, CPTPP may offer additional flexibility through its rules of origin provisions, allowing eligible materials, ingredients and components sourced 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 origin of a good is where it has been grown, produced or manufactured, and is not necessarily the country from which it is shipped or purchased. To qualify for preferential tariff treatment under a trade agreement, a product must meet the relevant rules of origin requirements.
The UK-Canada TCA and CPTPP have different rules of origin. Businesses can choose which agreement to use when claiming preferential tariff treatment, depending on which offers the most advantageous outcome for their product and supply chain.
For life sciences products, determining origin can be more complex, particularly where pharmaceuticals, medical devices, diagnostics or laboratory products incorporate ingredients, components or materials sourced from multiple countries. Businesses will need to assess whether their products meet the relevant origin requirements under the chosen agreement.
Under CPTPP, businesses can benefit from cumulation provisions, meaning materials and components sourced from other CPTPP member countries can count as originating when assessing whether a product meets CPTPP rules of origin.
For example, a medical device manufactured in the UK using electronic components from Japan and specialised materials from Malaysia may still qualify for CPTPP preferential treatment when exported to Canada if the relevant origin requirements are met.
Find more information on the rules of origin requirements and how to claim for preferential tariff treatment.
Conformity assessment
When fully implemented, the UK joining CPTPP will mean 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.
Procurement
Canada’s commitments under CPTPP reaffirm UK businesses’ right to bid for government procurement contracts, including the Canadian Department of Health and the Public Health Agency of Canada.
This means UK businesses should receive the same treatment Canada gives to its domestic businesses when tendering for government procurement, and that Canadian procuring entities do not discriminate against foreign competitors such as UK firms.
The UK and Canada’s shared commitments under CPTPP also allows UK businesses to request information on contract award decisions, if they did not win a tender. This means UK businesses can request an explanation of the reasons why a Canadian procuring entity did not select its tender and the relative advantages of the successful tender.
For more information, see our government procurement 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.
Good manufacturing practices
The existing UK-Canada trade agreement includes mutual recognition of the compliance and enforcement of Good Manufacturing Practices (GMP) for pharmaceutical products. This means that Health Canada, and the UK Medicines and Healthcare products Regulatory Agency (MHRA) and Veterinary Medicines Directorate (VMD), can recognise each other’s certification of GMP.
The mutual recognition of GMP allows for more efficient and effective compliance with GMP certification for pharmaceutical facilities in the UK and Canada. View more information on the UK-Canada Protocol for Recognition of Good Manufacturing Practices.
The UK’s GMP requirements must continue to be met, and similarly this arrangement does not circumvent the need to meet Canadian regulations – the mutual recognition instead reduces the regulatory burden on importers seeking to obtain information required to demonstrate GMP compliance for their foreign buildings.
As of 1 September 2022, the UK and Canada also recognise GMP inspections conducted outside of their respective jurisdictions. For more information, visit the Canadian government web explainer.
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.
