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Canada Clears Path for U.K. to Trade Under CPTPP

Canada has agreed to ratify the United Kingdom’s entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), resolving a major sticking point in bilateral relations and paving the way for both countries to trade under its terms. The move marks a significant step toward strengthening U.K.-Canada commerce as the two allies seek to deepen trade ties amid ongoing global economic uncertainty and rising protectionism from the United States.

The breakthrough came during an informal late-night dinner on the sidelines of the G7 summit in the Canadian Rockies, where British Prime Minister Keir Starmer and Canadian Prime Minister Mark Carney privately reached an understanding. The ratification allows both nations to fully benefit from the CPTPP — a trade pact representing over $15.8 trillion in combined GDP among its members as of 2024.

Canada had previously withheld ratification of the U.K.’s membership, despite London formally joining the CPTPP bloc. Tensions between the two countries peaked in early 2024 under the previous British government after trade negotiations collapsed over U.K. restrictions on hormone-treated beef. The impasse resulted in British cheesemakers losing access to the Canadian market and a 6 percent tariff hitting U.K. car exports following the expiry of a post-Brexit trade rollover agreement.

Canadian Ambassador to the U.K. Ralph Goodale had criticized Britain’s stance on hormone-fed beef, calling it “not scientifically justified,” and expressed skepticism about resolving the issue swiftly. Despite this, both governments have now signaled a willingness to reengage, with Canada’s International Trade Minister Maninder Sidhu emphasizing, “Canada has always remained at the negotiating table and we welcome the U.K.’s openness to resume talks.”

In a forward-looking move, the two countries also announced the creation of a bilateral task force focused on expanding cooperation in emerging sectors, including artificial intelligence and technology. The task force is also expected to examine the potential relaunch of broader U.K.-Canada Free Trade Agreement negotiations, though a British official described the effort as a “staging post” to assess feasibility within existing red lines.

Speaking on the shift in strategy, a Downing Street spokesperson noted: “The Prime Minister said that the world has changed when it comes to trade and the economy, so he wants teams to go as far and as fast as possible.”

Canada is expected to formally introduce the ratification legislation in Parliament this fall.

With CPTPP ratification now back on track and a renewed spirit of cooperation between Ottawa and London, both governments appear committed to redefining their economic relationship in a way that responds to the demands of a rapidly evolving global trade landscape.