At a glance
- The United Kingdom’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force between Canada and the U.K. on Sept. 1, 2026.
- The Canada-U.K. Trade Continuity Agreement remains in force alongside CPTPP.
- Businesses may use the agreement that produces the better result only if their goods satisfy that agreement’s rules of origin and its supporting certification and documentation requirements.
- CPTPP may provide additional flexibility where materials are sourced from other CPTPP countries or where goods do not qualify under the Canada-U.K. Trade Continuity Act.
- Businesses should separately assess CPTPP opportunities for services, investment, procurement, and temporary entry.
A French version will be posted shortly.
The U.K.’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) entered into force with Canada on Sept. 1, 2026, after Canada completed ratification. The Canada-U.K. Trade Continuity Act (TCA) continues to apply, so businesses may now assess two preferential trade frameworks for eligible Canada-U.K. activity.
What opportunities does CPTPP create for Canadian businesses?
CPTPP creates new opportunities for Canadian businesses by expanding the ways they can access and operate in international markets.
The Canada-U.K. TCA already provides broad preferential access, including the elimination of duties on approximately 99% of the U.K.’s tariff lines. CPTPP complements that access and may produce a better result for certain products, supply chains, services, investments, procurement opportunities, or temporary business travel.
For goods, the comparison is not limited to the lowest tariff rate. A business may claim preferential treatment only where the product satisfies the selected agreement’s product-specific rule of origin and the applicable certification, recordkeeping, and other customs requirements. CPTPP may offer a more favourable origin pathway for some products and allows materials from other CPTPP countries to count toward originating status.
CPTPP may also expand opportunities beyond customs duty, including in certain services sectors, access to U.K. procurement opportunities at regional and local levels, and temporary entry for eligible businesspersons. Businesses should evaluate these provisions separately because coverage, eligibility, and conditions vary by activity.
Example: Applying CPTPP rules of origin
A Canadian manufacturer producing equipment with CPTPP-originating components sourced from Japan or Mexico may be able to count those CPTPP originating inputs toward the product’s originating status when exporting to the U.K. If the same product does not meet the Canada-U.K. TCA origin rule, CPTPP could provide an alternative route to preferential treatment.
The outcome depends on the product’s Harmonized System (HS) classification, the specific origin rule, the value and origin of its inputs, and the available supporting records.
Next steps for businesses with U.K. imports and exports
Before changing existing preferential claims or applying CPTPP to new transactions, businesses importing from or exporting to the U.K. should:
- Confirm the HS classification and applicable tariff treatment for each product.
- Compare the preferential duty rate and any relevant tariff-rate quota under each agreement.
- Test each product against the applicable rule of origin under each agreement.
- Assess whether CPTPP cumulation improves the origin outcome based on the source and originating status of materials.
- Verify the required origin certification, supporting records, and customs procedures before claiming preference.
- Review contracts, systems, and supplier documentation to support consistent application of the selected agreement.
- Evaluate potential CPTPP benefits for services, procurement, investment, and temporary entry.
How BDO can help
BDO’s Customs & International Trade services team can help businesses:
- Compare the Canada-U.K. TCA and CPTPP on a product-by-product basis.
- Confirm tariff classifications and model potential duty outcomes.
- Test rules of origin and assess whether CPTPP cumulation improves the result.
- Review origin certifications, supporting records, and customs procedures.
- Implement the appropriate preferential claiming process.
- Identify market access opportunities and compliance risks for goods, services, procurement, investment, and business travel.
Before changing a preferential claim, businesses should validate the result for each product and supply chain. Contact BDO to assess which agreement applies, quantify potential savings, and establish the documentation needed to support the claim.
The information in this publication is current as of Sept. 2, 2026.
This publication has been carefully prepared, but it has been written in general terms and should be seen as broad guidance only. The publication cannot be relied upon to cover specific situations and you should not act, or refrain from acting, upon the information contained therein without obtaining specific professional advice. Please contact BDO Canada LLP to discuss these matters in the context of your particular circumstances. BDO Canada LLP, its partners, employees and agents do not accept or assume any liability or duty of care for any loss arising from any action taken or not taken by anyone in reliance on the information in this publication or for any decision based on it.