Canada and the United Kingdom announced Sunday the creation of a new economic and trade working group aimed at strengthening bilateral ties and enhancing cooperation in key sectors. The working group will deliver its recommendations to both countries’ prime ministers within six months, according to a joint statement issued by Prime Minister Mark Carney of Canada and British Prime Minister Keir Starmer.
The announcement comes as Prime Minister Starmer arrived in Canada for talks with Carney ahead of the G7 leaders’ summit taking place in Alberta from Sunday through Tuesday.
Carney has been actively seeking to diversify Canada’s trade relationships amid challenges posed by U.S. tariffs on key sectors such as steel, aluminium, and automobiles.
“We will establish a new structured UK-Canada Economic and Trade Working Group to deepen our existing trading relationship further,” the joint statement said.
The initiative will aim to break down trade barriers, promote digital commerce, and encourage cooperation in emerging fields like artificial intelligence and critical minerals.
Although the UK is a key partner, it currently represents a modest portion of Canada’s trade, accounting for just 3.6% of exports and 1.2% of imports in 2024, according to the Conference Board of Canada. Canada’s main exports to the UK include gold and energy products.
The two leaders also confirmed that Canada would introduce legislation later this year to ratify the UK’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a major free trade bloc that includes 11 countries. The UK secured access to nine Indo-Pacific markets under the deal last year and is awaiting final ratification from Canada and Mexico.
In addition to trade, the joint statement emphasised expanded defence cooperation, particularly in supporting Ukraine amid ongoing geopolitical tensions.
Reuters/s.s