From professional licencing to aerospace security and supply chain disruptions – read key reflections on boosting trade and investment in the UK-Canada markets.
Despite the current economic challenges, Canada and the United Kingdom maintain a strong economic relationship, with centuries of shared political history.
Canada offers British companies a stable and predictable investment environment, strong fiscal fundamentals (the lowest net debt in the G7), consistently low unemployment, and a competitive tax environment – not to mention the strong links to the rest of the global economy, having negotiated free trade agreements with 65% of the world’s consumers.
UK-Canada trade remained incredibly strong during the course of the pandemic. Both sides have also committed to deepening economic ties through an upgraded and modernised free trade agreement (FTA), which began in March 2022. The two sides have also explored opportunities to improve cooperation in areas outside the framework of FTAs such as supply chain security and renewable energy flows.
The CBI North America office travelled to Ottawa this summer to engage with Canada-based CBI members and the UK High Commission in Ottawa about their priorities for a renewed UK-Canada FTA.
Professional Licensing
Labour shortages, especially the lack of skilled workers, were a top issue of discussion, as UK firms have struggled to convince Canadian officials about the need for global expertise to grow their business within Canada.
Professional licensing restrictions in Canada have made this a major challenge, despite the Canadian business community’s interest in the UK’s economic dynamism and innovation. Inter-provincial regulatory barriers also frequently hamper UK businesses, who can’t easily transfer staff across borders in fields like architecture or medicine to take new jobs.
Members in the room noted that licensing challenges have direct impacts on other areas of investment, such as government procurement, as UK services firms cannot bid for projects unless partnered with a local firm or if licensed by a local regulator.
Infrastructure and Defence
Members also discussed the importance of promoting UK expertise in the Canadian aerospace and defence sector, e
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