Close ties with the UK
Canada has a close trade relationship with the UK. Our ties are built on a long and proud history of working together. We are the only two countries to be members of the G7, the G20, the Commonwealth, Five Eyes and NATO.
The UK concluded negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 31 March 2023 and signed the Protocol of Accession on 16 July 2023. Canada is a member of the CPTPP.
Sophisticated market
Canada has a highly developed and competitive market with similar business practices to the UK. Its strong business and consumer base is sensitive to both price and quality. Bringing something new or different are often seen as the keys to success.
Top five UK goods exported to Canada , in the four quarters to the end of Q2 2024
| Goods | Value (£ billion ) |
|---|---|
| Crude oil | |
| Cars | |
| Mechanical power generators (intermediate) | |
| Aircraft | |
| Medicinal & pharmaceutical products |
Source:
ONS Trade in goods: country-by-commodity exports
Last updated: October 2024
Download the latest trade and investment factsheet for Canada.
Top five UK services exported to Canada , in the four quarters to the end of Q2 2024
| Service | Value (£ billion ) |
|---|---|
| Other Business Services | |
| Insurance and Pension | |
| Financial | |
| Travel | |
| Telecommunications, computer and information services |
Source:
ONS UK trade in services: service type by partner country, non-seasonally adjusted
Last updated: October 2024
Download the latest trade and investment factsheet for Canada.
Total import value (into the UK from Canada) and export value (from the UK into Canada) over time
| Year | Imports (£ billion ) | Exports (£ billion ) | Total trade (£ billion ) |
|---|---|---|---|
| 2016 | 7.2 | 10.0 | 17.2 |
| 2017 | 8.5 | 10.8 | 19.2 |
| 2018 | 9.1 | 12.0 | 21.0 |
| 2019 | 11.7 | 11.6 | 23.3 |
| 2020 | 7.4 | 11.8 | 19.3 |
| 2021 | 8.9 | 12.7 | 21.6 |
| 2022 | 11.3 | 14.6 | 25.9 |
| 2023 | 9.3 | 15.8 | 25.0 |
Source:
ONS UK total trade: all countries, seasonally adjusted
Last updated: October 2024
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Canada.
Canada: at a glance
Economic growth
1.1%
Actual figure (IMF, 2023)
The UK is 0.1% (IMF, 2023, projected figure)
GDP per capita
$53,607
Actual figure (IMF, 2023)
The UK is $49,099 (IMF, 2023, projected figure)
Currency
Canadian dollar
Business language
English, French
You may need a translator in the province of Québec
Time zone
GMT -5 (Ottawa)
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Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Canada have identified particular opportunities for UK businesses in the following sectors:
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Canada has a robust and well-established aerospace sector. Quebec is the second most important exporting and importing province to the UK, with Ontario being first. Canadian aerospace companies have a well-deserved reputation for quality, value and performance, making them reliable trading partners. The aerospace industry makes up the largest source of imports and exports combining Canada and the United Kingdom.
Net zero ambitions
Canada’s updated Aviation Climate Action Plan sets an ambitious vision for the sector to be net zero by 2050 and an aspirational target for the use of sustainable aviation fuel by 2030. This call for decarbonisation offers opportunities for UK companies with solutions including: greater fuel efficiency, technology around electric batteries and green hydrogen as well as sustainable raw material.
Research and development
The aerospace sector has tremendous opportunities for research and development for manufacturing industries. The Canadian government also provides strong incentives for R&D to ensure Canadian industries remain compehttps://great-cms.london.cloudapps.digital/admin/pages/titive. Innovation partnerships are therefore a good entry point for joint efforts between UK and Canada companies.
Local talent
The Government of Canada is committed to supporting skills development to ensure highly qualified people who work in the aerospace sector keep developing innovative products. They are doing so by investing in training programmes led jointly by universities and the industry, for example. Through this type of project, local and foreign companies have access to a pool of highly qualified workers.
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Canada has widespread infrastructure plans and UK business experience in the field is highly valued.
Public infrastructure projects
The Canadian government continues to plan widespread public infrastructure improvements. This presents opportunities for UK businesses to enter a market with a reliable pipeline of opportunities.
Demand for UK services
UK businesses are respected in Canada, and they are recognised for long-term market experience and thought leadership. This helps UK suppliers looking to export, especially specialised technical and advisory services.
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The UK and Canada share a language and a number of cultural traits, one of which is similar tastes in food and drink. There's a demand for UK goods and our brands are well-recognised.
Diverse consumer market
Canada has an affluent and sophisticated consumer base with a strong appetite for free-from, organic, speciality and health foods. There is also demand for religious, snack and convenience foods. This diverse market offers a wide range of opportunities for UK business to enter the market.
Demand for premium products
In Canada, UK food has a strong reputation for quality. There are opportunities for purveyors of premium products, especially in categories such as niche meats and fine cheeses.
Check for trade barriers
Trade barriers, such as tariffs or taxes, can raise costs, cause delays, or even stop you from exporting. Check for any issues that may impact your business when exporting.
Check duties and customs
Find information on how to export goods from the UK. View the duties, rules, restrictions, and the documents you need for your products.
Doing business in Canada
Preparing to export
The UK and Canada have signed a double taxation agreement, meaning the same income is not taxed twice.
The Canada Border Services Agency provides a step-by-step guide for importers of goods into the country, which will help you understand the requirements.
VAT
You can zero-rate the sale of your goods to Canada, provided you get and keep evidence of your export, and comply with all other laws.
You must also make sure the goods are exported, and you must get the evidence within 3 months from the time of sale.
Regulations
Some industry sectors are regulated in Canada. Find out more about the regulations and permits needed.
Trade barriers
Check for any reported barriers to trading with Canada.
Report any trade barriers that are affecting your business so we can help fix them.
Operating in Canada
English common law is the basis for the law in 9 of Canada's provinces and 3 of its territories. French civil law is the basis of the law in Québec.
Canada is a federal state. Your business in Canada will be subject to both federal and provincial or territorial laws. This can sometimes make doing business complicated for first-time exporters to the country.
Intellectual property
Intellectual property (IP) rights are territorial and rights granted in the UK do not provide protection elsewhere. You should consider getting IP protection abroad if you want to trade overseas or sell to overseas customers via the internet.
The Intellectual Property Office provides practical information to help you protect, manage and enforce your IP abroad. Further support for British businesses can be found through a network of IP attachés, based in key UK export markets.
View guidance on IP in Canada on GOV.UK.
Payment terms
You're always advised to seek the most secure method of payment possible, such as payment in advance or a letter of credit.
Payment conditions must be factored into prices. For business-to-business transactions these can range from immediate payments on receipt of goods (often with a negotiated small discount) to a negotiated 60-day payment.
Language
Canada is a bilingual country. The official languages are English and French, but English is widely spoken outside of Québec province.
French is the business language in Québec under provincial law. You may need an interpreter for business meetings in Québec if you don’t speak French fluently.
You should include French and English translations on business cards in Québec.
Next steps
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Step-by-step lessons to accelerate your exporting ability.
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