Ottawa, June 17: Canada and the United Kingdom have agreed to establish a joint economic and trade working group aimed at strengthening bilateral trade ties and expanding collaboration in key sectors, the two governments said in a joint statement on Sunday.
The announcement came as British Prime Minister Keir Starmer arrived in Canada for bilateral talks with Prime Minister Mark Carney, ahead of the G7 Leaders’ Summit set to begin in Alberta on Monday.
“We will establish a new structured UK-Canada Economic and Trade Working Group to deepen our existing trading relationship further,” the joint statement said, noting the group will deliver its recommendations to both prime ministers within the next six months.
The initiative aims to tackle market access barriers and explore new areas of cooperation, including digital trade, critical minerals, and artificial intelligence infrastructure.
While the United Kingdom is an important partner for Canada, trade volumes between the two remain relatively modest. According to the Conference Board of Canada, the UK accounted for 3.6% of Canada’s exports and 1.2% of its imports in 2024, with gold and energy products dominating Canadian exports.
Canada will also introduce legislation later this year to ratify the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade bloc of 11 Pacific Rim countries.
The UK gained access to nine member countries under the Indo-Pacific agreement in 2024 and is awaiting ratification by both Canada and Mexico to complete its entry.
The Canadian government has been actively seeking to diversify its trade partnerships as domestic industries, particularly steel, aluminum, and automotive, continue to face punitive tariffs from the United States.
In addition to trade, the two nations agreed to expand defense cooperation, including continued joint support for Ukraine amid the ongoing conflict with Russia. The statement did not provide further details on the scope of military collaboration but signaled increased alignment on global security priorities.
The announcement comes as leaders of the Group of Seven (G7) prepare to meet in the mountain town of Kananaskis, where discussions are expected to focus on economic resilience, trade, and geopolitical challenges, including the escalating conflict between Iran and Israel.
