Key points at a glance:

  • EU–Canada CETA: provisionally applied since , it has eliminated or reduced almost all customs duties.
  • Canada–United Kingdom agreement: in force since , it has preserved most of the trade benefits that existed before Brexit.
  • Rules of origin: tariff preferences are not automatic. Goods must meet the criteria of the agreement concerned.
  • What is new in 2026: EU–Canada negotiations on digital trade are progressing, while the CPTPP offers an additional option for trade between Canada and the United Kingdom.

Trade agreements enable businesses to reduce their customs duties and facilitate their international trade. However, their benefits are not always fully exploited, particularly when rules of origin and customs formalities are not properly mastered.

Two agreements deserve particular attention: the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union, and the Trade Continuity Agreement between Canada and the United Kingdom.

What are their benefits, which conditions must be met and which developments should businesses be aware of in 2026?

CETA: what are the benefits for European businesses?

The Comprehensive Economic and Trade Agreement, or CETA (AECG in French), governs trade between Canada and the European Union1.

It aims to facilitate trade by reducing customs duties and certain barriers to trade.

What are the main benefits of CETA?

Main benefits of CETA for businesses
Benefit Value for businesses
Reduction of customs duties Possible decrease in import and export costs
Trade facilitation Customs procedures and cooperation governed by the agreement
Market access Business opportunities in the sectors covered
Protection of certain geographical indications Protection of identified European products
Access to public procurement Additional opportunities for eligible businesses

According to the European Commission, 99% of tariff lines had been eliminated by 20242. Goods must nevertheless meet the conditions laid down in the agreement in order to benefit from tariff preferences.

Why is CETA still underused?

The preference utilisation rate for European Union exports to Canada rose from 38.7% in 2018 to 63.2% in 2024.

This increase shows that businesses are making greater use of the agreement’s benefits, but that there is still room for improvement.

Several factors may explain this situation:

Best practice: check the eligibility of your goods before each import or export operation.

What is new for CETA in 2026?

On , the European Union and Canada announced the launch of negotiations on a digital trade agreement3.

This initiative aims to deepen their economic relationship. However, it does not in itself change the tariff preferences applicable to goods.

For businesses, the priority therefore remains to master the existing rules of origin and customs formalities.

Canada–United Kingdom Trade Continuity Agreement: what do you need to know?

In force since 4, the Canada–United Kingdom Trade Continuity Agreement has maintained a large share of the trade benefits that existed between the two countries before Brexit.

In particular, it covers:

What are its benefits?

The agreement allows eligible businesses to benefit from preferential tariff conditions for their trade between Canada and the United Kingdom.

Key points of the Canada–United Kingdom Trade Continuity Agreement
Key point What to remember
Entry into force 1 April 2021
Objective Maintain trade benefits after Brexit
Customs duties Preferences possible depending on the goods and the conditions of the agreement
Origin Mandatory compliance with the specific rules
Supporting document Origin declaration compliant with the applicable requirements

Why are rules of origin essential?

Goods shipped from the United Kingdom are not necessarily considered to originate in the United Kingdom.

Their preferential origin depends in particular on how they are manufactured, the materials used and the processing carried out.

Point to watch: since , materials originating in the European Union can no longer automatically benefit from the cumulation previously provided for under this agreement5.

British manufacturers that use European components must therefore check that their products still comply with the applicable rules of origin in order to benefit from tariff preferences in Canada.

What is new in 2026?

Since , the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) has also applied to trade between Canada and the United Kingdom6.

Businesses can therefore compare two schemes:

  • The Canada–United Kingdom Trade Continuity Agreement;
  • The CPTPP.

As the rules of origin and the conditions for accessing preferences differ, both options should be assessed according to the goods concerned.

CETA or the Canada–United Kingdom agreement: what are the differences?

Comparison between CETA and the Canada–United Kingdom Trade Continuity Agreement
Criterion CETA Canada–United Kingdom agreement
Partners European Union and Canada United Kingdom and Canada
Application Since 21 September 2017, on a provisional basis Since 1 April 2021
Objective Facilitate EU–Canada trade Maintain trade benefits after Brexit
Tariff preferences Depending on the product and its origin Depending on the product and its origin
Proof of origin Declaration compliant with CETA Declaration compliant with the bilateral agreement
Recent development Negotiations on digital trade in 2026 CPTPP applicable between the two countries since September 2026

Neither of these agreements automatically guarantees an exemption from customs duties. Preferential origin, tariff classification and product-specific conditions must be checked.

How can you benefit from tariff preferences?

Businesses must follow several steps to determine whether their goods are eligible.

The process at a glance

  1. Identify the product

    Determine its tariff classification.

  2. Check its origin

    Review the rules of origin specific to the agreement.

  3. Compare the agreements available

    Examine the applicable duties and the conditions of each scheme.

  4. Prepare the supporting documents

    Draw up a compliant origin declaration and gather the necessary evidence.

  5. Secure customs clearance

    Check that the documents and customs declarations are consistent.

This approach makes it possible to identify potential savings while limiting the risk of errors or of the preferences granted being challenged.

Why seek expert support?

Trade agreements represent a cost optimisation opportunity, but applying them requires a sound command of customs rules.

Specialist support makes it possible in particular to:

  • Identify the applicable agreements;
  • Check the tariff classification and origin of the goods;
  • Secure proofs of origin;
  • Compare the trade schemes available;
  • Make import and export operations more reliable.

CETA and the Canada–United Kingdom agreement: how can you make the most of them?

CETA and the Canada–United Kingdom Trade Continuity Agreement offer opportunities to reduce customs duties for businesses that meet the required conditions.

While CETA remains an important lever for trade between the European Union and Canada, the bilateral agreement with the United Kingdom deserves particular attention because of its specific rules of origin and the additional option offered by the CPTPP since September 2026.

To make the most of these agreements, businesses must check the origin of their goods, compare the applicable schemes and secure their customs formalities.

ASD Group Customs supports businesses in managing their customs formalities and their international trade.

Would you like to check what these agreements could offer for your goods?

The experts at ASD Group Customs check the origin and tariff classification of your products and secure your customs formalities with Canada and the United Kingdom.

Contact our experts →
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ASD Group editorial team

Experts in VAT, customs and international regulations

The ASD Group team is a collective of specialist experts. It writes and manages the blog articles and news on our websites, with a focus on VAT, international taxes, customs operations, social regulations and international trade. With a clear and accessible style, the team makes complex and technical subjects easy to understand and relevant for businesses.

Sources:

  1. European Commission, Access2Markets, “Accord économique et commercial global UE-Canada” (in French): https://trade.ec.europa.eu/access-to-markets/fr/content/accord-economique-et-commercial-global-ue-canada ↩
  2. European Commission, DG Trade, “EU trade relations with Canada”: https://policy.trade.ec.europa.eu/eu-trade-relationships-country-and-region/countries-and-regions/canada_en ↩
  3. Global Affairs Canada, “Accord sur le commerce numérique Canada–Union européenne” (in French): https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/eu-dta/index.aspx?lang=fra ↩
  4. Global Affairs Canada, “Accord de continuité commerciale Canada–Royaume-Uni” (in French): https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cuktca-acccru/index.aspx?lang=fra ↩
  5. UK Government, Department for Business and Trade, “Notice to traders 2024: update on use of ‘EU cumulation’ clause and origin quotas in trade with Canada”: https://www.gov.uk/government/publications/notice-to-traders-2024-rules-of-origin-update-for-canada/notice-to-traders-2024-update-on-use-of-eu-cumulation-clause-and-origin-quotas-in-trade-with-canada ↩
  6. Government of Canada, news release of , “Le ministre Sidhu annonce la ratification par le Canada du protocole d’adhésion du Royaume-Uni au PTPGP” (in French): https://www.canada.ca/fr/affaires-mondiales/nouvelles/2026/07/le-ministre-sidhu-annonce-la-ratification-par-le-canada-du-protocole-dadhesion-du-royaume-uni-au-ptpgp.html ↩