London: In a significant move aimed at strengthening bilateral relations, Canada and the United Kingdom have announced the establishment of a joint trade working group and an expanded defence partnership. The agreement was unveiled on the eve of the G7 Summit being hosted in Alberta, Canada, and signals a renewed commitment to deepen economic and strategic collaboration between the two allied nations.
The newly formed Canada–UK Trade Working Group will serve as a strategic platform to dismantle trade barriers, enhance cooperation in emerging technologies like artificial intelligence, and promote the development of critical mineral supply chains. The group is expected to deliver a detailed set of recommendations within six months, focusing on facilitating smoother business operations and fostering innovation between the two economies.
On the commercial front, both nations are eyeing greater economic diversification. For Canada, the UK’s market offers an opportunity to reduce reliance on U.S. trade, especially amid ongoing American tariffs on steel, aluminum, and automotive goods. The UK, meanwhile, continues to push for stronger trade ties post-Brexit, with Canada’s Parliament poised to vote on Britain's accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) later this year.
The agreement also covers expanded defence cooperation. Both sides reiterated their unwavering support for Ukraine and vowed to deepen collaboration within NATO and the Five Eyes intelligence alliance. Plans include enhanced joint military training, coordinated equipment production, and greater strategic alignment in global security efforts.
Though the UK currently accounts for only 3.6% of Canada’s exports and 1.2% of its imports—mainly in gold and energy—the new initiatives are seen as a bold step toward unlocking untapped trade potential and reinforcing shared values of democracy, security, and free enterprise.
As the G7 Summit gets underway, the Canada-UK announcement stands out as a proactive signal of transatlantic unity and future-oriented diplomacy.