Jump to:
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.
Canada investment climate
The UK and Canada have a strong existing investment relationship, helped by Canada having a very well-educated population and stable political and economic climate. Canada’s investment climate is enhanced by its location as a strategic gateway to both the United States and Latin America.
Canada has a diverse and highly skilled workforce, with strong focus on science, technology, engineering and maths (STEM). This has led to Canada becoming a regional hub for innovation and research and development (R&D). Investing in Canada is also a useful route to preferential access to other markets and supply chains, including the United States. Canada is one of the most stable economies in the world, which makes it a top investment destination.
More information on investing in Canada can be found on the Invest in Canada website.
The UK’s free trade agreement commitments
Our FTA commitments give investors 2 main areas of benefit:
- investment protections that guarantee the treatment investors can expect to receive, which includes protection from discriminatory, unfair, or arbitrary treatment
- guaranteed market access that will ensure openness to investment and provide investors with certainty and transparency
CPTPP’s provisions are backed by a modern and transparent Investor-State Dispute Settlement (ISDS) mechanism. This provides UK investors with recourse to an independent tribunal should any of the CPTPP members breach their commitments. This has been disapplied with Australia and New Zealand. The UK also has bilateral investment treaties with ISDS with a number of CPTPP members.
The UK’s bilateral FTAs and CPTPP co-exist alongside each other, and investors will be able to benefit from the provisions in both. This means that UK investors will benefit from an investment commitment as long as it is contained in one of the agreements.
See the CPTPP investment chapter for the full range of provisions. Please note that this link directs you to the New Zealand Foreign Affairs and Trade Ministry which is responsible for the CPTPP agreement text.
Agreed outcomes for UK investors
Equal and open access
We have committed to not discriminate on the basis of nationality, between our own investors and investors of a CPTPP party. In addition, we have committed that if either of our countries choose to provide more generous treatment to investors from a third country in the future, that we will extend this treatment to each other.
We have also committed to not quantitively limit investments through restrictions such as:
- equity caps
- joint venture requirements
- economic needs tests
Reduced investment requirements
We have committed to not impose certain requirements on foreign investors that would adversely affect their investment.
Such requirements include:
- export requirements
- local content requirements
- forced technology transfer as a condition of investment
We have also committed to prohibit some nationality and residency requirements for senior managers and boards of directors.
Reservations
In some cases, countries specify where their investment market access commitments should not apply, these are commonly known as reservations. They are set out by each CPTPP party in its Services and Investment Schedule found in Annex I and Annex II. Annex I lists existing areas where the country is not its applying investment commitments, and Annex II lists areas where the country is reserving its right to retain or introduce new measures to which investment commitments do not apply in the future.
Both CPTPP and the UK-Canada FTA are negatively listed agreements, meaning that Canada has listed only the areas they want to exclude, and everything else is open to foreign investment. In the UK-Canada FTA, Canada’s commitments can be found in Annex I and Annex II.
Free movement of capital
We have committed to ensure that investors can easily make monetary transfers including capital, profits, interest, dividends, and royalty payments. We have agreed that these transfers should happen without delay and should be permitted in a freely usable currency.
Treatment and compensation
We have committed to guarantee a minimum standard of treatment to investors in line with customary international law. We have also committed to protecting investors from expropriation and losses as a result of armed conflict or civil strife in member states and have agreed principles for how any compensation should be paid.
Investor-state dispute settlement
We have committed to a modern and transparent Investor-State Dispute Settlement (ISDS) mechanism. This will ensure that UK investors can access an independent form of legal redress should they not receive guaranteed standards of treatment. This mechanism has been disapplied for Australia and New Zealand.
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.
