United Kingdom’s Accession to the CPTPP: Summary of Negotiated Outcomes

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is a free trade agreement (FTA) that is designed to expand over time to include new member economies through accessions.

The United Kingdom (UK) is the first economy to have successfully completed the CPTPP accession process. It is Canada’s 3^rd largest trading partner. Since 2016, trade in goods and services with the UK has increased 52.6% to $60.9 billion in 2024. The UK is also the 2^nd largest source of foreign direct investment in Canada, with over 1,100 UK-affiliated companies employing over 171,000 workers; likewise, the UK is the 2^nd largest destination for Canadian investment abroad, with the total stock of bilateral direct investment reaching $97 billion in 2024.

The UK’s CPTPP accession complements the existing market access provided by the Canada-UK Trade Continuity Agreement (TCA), allowing Canadian businesses and consumers to benefit from increased trade with this important market. The CPTPP creates additional opportunities in the UK market for traders, producers, suppliers, and processors, enabling them to diversify where they do business abroad.

The TCA will remain in effect after the CPTPP enters into force between Canada and the UK on September 1, 2026. Canadians will be able to choose to trade under either agreement, based on what best suits their needs.

Some of the key negotiated outcomes of the UK’s CPTPP accession for Canada can be found below:

Trade in goods

The Canada-UK TCA already eliminates 99% of the UK’s tariff lines. The UK’s CPTPP accession complements—but does not replace—this existing market access. Under the CPTPP, the UK will provide Canadian exporters with the following commitments, which are not covered by the TCA:

• Additional duty-free tariff rate quota volumes for certain meat products
• Immediate duty-free, quota-free access for sweetcorn
• Preferential treatment for poultry and eggs

The UK’s accession provides new opportunities for Canadians to diversify their business and supply chains by being able to qualify for preferential treatment using the rules of origin of either the CPTPP or the TCA. Notably, the CPTPP’s rules of origin provide a more liberal pathway to origin for many of Canada’s export interests in the agricultural sector, including for certain processed fish products (which are unable to access the UK market under the TCA). More broadly, materials sourced from other CPTPP markets will now count toward the originating status of goods made in Canada when exported to the UK; Canadian materials can now be used for products made in other CPTPP markets for the same purpose. Likewise, Canadian exporters can now also incorporate UK inputs into their final products to qualify for preferential treatment in other CPTPP markets.

Canada protected its sensitive supply managed sector and did not provide any further concessions as part of the UK’s CPTPP accession process. The UK will gain access to Canada’s existing market access commitments under the CPTPP, including our established TRQs for dairy, poultry, and eggs. Canada will also establish a new UK-specific TRQ for beef and veal, which mirrors the volume that the UK provided to Canada and select other Parties under the CPTPP.

Investment

The CPTPP helps ensure a transparent and predictable environment for Canadian companies to invest and do business more confidently in the UK. With the UK’s accession, Canadian investors with investments in the UK market will benefit from the CPTPP’s protections from unfair and discriminatory treatment, which complement the protections they are afforded through the TCA.

Through the CPTPP, Canadian companies will gain access to arbitration to resolve disputes regarding the investments in the UK, enabling them to bring claims against UK measures that violate the CPTPP’s investment provisions. Likewise, UK investors will be afforded the same benefits for their investments in Canada. As a result, the CPTPP will increase Canada’s overall attractiveness as a destination for UK investment.

Canada’s right to regulate in the public interest to achieve legitimate policy objectives has not changed with the UK’s accession, including in relation to public health, safety, the environment, and other social priorities.

Cross-border trade in services

The UK’s CPTPP accession provides an additional path for Canadian companies to find and take up business opportunities in the UK market. Canadian suppliers of construction and real estate services will benefit from now being on a level playing field in the UK market. Canadians will also benefit from additional access for distribution services, a sector which is not covered under the Canada-UK TCA.

In addition, the UK strengthened its commitment to providing Canada with the best treatment as will be afforded to most future FTA partners, ensuring that Canadians will maintain their competitiveness in the UK market in the long. This helps maximize the opportunities for Canadian companies to diversify and reduce their dependence on certain markets for their services.

Temporary entry

The UK’s CPTPP accession provides new access for Canadians that go beyond what is already available through the Canada-UK TCA. Canadians may be able to take advantage of the UK’s additional commitments for:

• Permanent residents
• Business visitors, who will be able to travel and stay up to 90 days in the UK within any 12-month period
• Investors, who will be able to travel and stay for up to 1 year in the UK to set up or manage an investment operation
• Spouses of intra-corporate transferees, who will be able to enter the UK and work alongside their partner for a period of up to 3 years.

In addition, highly-skilled Canadian professionals seeking to work in the UK on a short-term contract (either independently or through a company-to-company contract) will benefit from the UK’s commitment to double their duration of stay from 6 months under the TCA to 12 months through the CPTPP.

These commitments will expand the horizons for Canadians by facilitating business travel or temporary relocation to support the expansion of their operations and investments in the UK market.

Financial services

Financial services dominates Canada-UK services trade, accounting for over $3 billion in trade annually. Building upon the comprehensive market access to the UK’s open financial services market, the UK’s CPTPP accession will provide Canadian financial services suppliers with some additional benefits, including:

• The ability to participate in cross-border supply of certain portfolio management services, including investment advice to UK clients from Canada
• The ability to participate in the cross-border supply of electronic payment services, subject to certain prudential requirements
• The UK’s recognition of the importance of regulatory processes that expedite the offering of insurance products by licensed insurers

Government procurement

The UK’s CPTPP accession builds upon the existing government procurement liberalisation mechanisms between Canada and the UK, namely the WTO Agreement on Government Procurement and the TCA. Canadian suppliers may benefit from guaranteed access to procurement opportunities at all levels of government in the UK, including regional and local contracting authorities.