Canada and UK to Launch Trade Working Group, Deepen Defense Cooperation
Canada and the United Kingdom on June 15, 2025, made a major move towards further strengthening bilateral relations by creating a new Economic and Trade Working Group. The deal, which was unveiled during UK Prime Minister Rishi Sunak’s trip to Ottawa, seeks to strengthen cooperation on trade as well as broaden defense cooperation, a move that represents a strategic shift against the backdrop of global economic and security challenges.
The new working group will make recommendations within the next six months on removing market access barriers and how to cooperate in the fields of digital trade, critical minerals, clean energy, and artificial intelligence. Canada also reaffirmed intentions to table legislation later in the year to ratify the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) as a further boost to the UK’s post-Brexit ambitions in the Indo-Pacific.
Concurrently, the two countries reaffirmed global security commitments, specifically their continued commitment to supporting Ukraine. Canada committed to achieving NATO’s 2% of GDP defense spending goal, mirroring the UK and reaffirming their cooperation through endeavors such as Operation Interflex and the Five Eyes intelligence program.
The UK is Canada’s third-largest trading partner, with the two-way trade totaling CA$61 billion in 2024. This new emphasis on trade and defense cooperation comes during Canada’s larger initiative to diversify its economic relationships away from the U.S. and meet the evolving global geopolitical situation.
The deal is a future-oriented partnership between two traditional allies, looking to steer together through future global challenges while deepening mutual economic resilience and defense preparedness.
