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On July 3, 2026, Canada ratified the Protocol on the Accession of the United Kingdom (“UK”) to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (“CPTPP”). The CPTPP will apply to Canada-UK trade effective September 1, 2026.
From that date onwards, qualifying goods traded between Canada and the UK may benefit from CPTPP preferential tariff rates, provided the applicable rules of origin are met. This may create new opportunities for Canadian importers and exporters.
What is the CPTPP?
The CPTPP is a free trade agreement between Canada and ten Indo-Pacific countries, including Australia, Brunei, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam. It entered into force for Canada on December 30, 2018, after Parliament enacted the Comprehensive and Progressive Agreement for Trans-Pacific Partnership Implementation Act in October 2018.
A key benefit of the CPTPP is that it reduces or eliminates tariffs on a wide range of goods traded between member countries. It also sets out detailed rules of origin to determine which goods qualify for preferential tariff treatment. These measures expand Canadian businesses’ access to key markets in the Indo-Pacific region.
The UK’s Accession to the CPTPP
The CPTPP was designed as a “living agreement,” allowing new members to join if they meet its standards. After leaving the European Union, the UK signed the accession protocol in July 2023 and became the CPTPP’s twelfth member on December 15, 2024.
Canada has now completed its ratification process, clearing the way for the CPTPP to apply between Canada and the UK. The agreement will take effect between the two countries on September 1, 2026. The new CPTPP-reduced tariff rates applicable to imports from the UK will be “staged” over time, with full reductions in place by January 1, 2028.
Potential Benefits for Canada–UK Trade
The UK was Canada’s leading trading partner in Europe and its fourth-largest merchandise trading partner worldwide. Its accession to the CPTPP gives Canadian businesses broader market access and new trade and investment opportunities.
While businesses trading in goods will be most focussed on the rules of origin and reduced tariffs that are available (reductions being phased in over time for some goods), the CPTPP is a comprehensive agreement that also contains investment protections (and access to an investor-state arbitration system), regulatory transparency and cooperation obligations on signatories.
Takeaway
With Canada’s ratification of the UK’s accession protocol, the CPTPP will apply to Canada–UK trade beginning September 1, 2026. From that date, businesses in both countries may claim the agreement’s preferential tariff rates, provided the applicable rules of origin and other requirements are met.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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