The UK was Canada’s third largest destination for merchandise exports worldwide in 2019, and a key source of foreign direct investment and Science & Technology partnerships.
Two-way merchandise trade with the UK amounted to $29 billion in 2019, making it Canada’s fifth largest trading partner after the US, China, Mexico and Japan.
The UK is Canada’s second largest services trading partner in the world, after the US.
Bilateral trade in services between Canada and the UK in 2019 amounted to over $14.5 billion. Canadian exports were almost $7.1 billion
On December 9, 2020, Canada and the United Kingdom signed the Canada-UK Trade Continuity Agreement (Canada-UK TCA).
The TCA preserves the main benefits of CETA, including the elimination of tariffs on 98% of products exported to the U.K. This means Canadian exporters continue to have preferential access to the UK market.
The UK is a large, diverse and sophisticated economy, home to many important global firms, including the headquarters of 22 Fortune Global 500 companies.
London remains one of the world’s most important financial centres, offering great opportunities in financial services and related technologies.
The UK is a global hub for firms across a range of sectors. There is high demand for products and services that lower costs and improve efficiencies. With ambitious low-carbon targets, there is demand for renewable energies.
The UK is Canada’s fourth most important source of foreign direct investment (FDI) after the US, the Netherlands, and Luxembourg. In 2019, FDI stock from the UK was valued at $62.3 billion.
Canadian stock of FDI in the UK was valued at $107.0 billion in 2019. That makes the UK Canada’s second largest destination for Canadian direct investment abroad. Canadian public sector pension funds have over $51 billion invested in UK infrastructure and real estate.
The UK is Canada’s most important science, technology and innovation (STI) partner in Europe and is the second most important STI partner in the world, after the US. This importance is underscored in the comprehensive Canada-UK Memorandum of Understanding to facilitate further bilateral STI cooperation.
