Market of opportunity: Doing trade in the United Kingdom

The United Kingdom is a market of opportunity for Canadian businesses. The ties that bind the United Kingdom and Canada together—both historic and economic—have often been tested, but are strong and resilient enough to withstand political disruptions. We don’t just share history, culture and language, the U.K. and Canada are members of the G7, G20 and of course, the Commonwealth.

“In 2020, bilateral trade between the U.K. and Canada was $27.8 billion. Brexit or no Brexit, the relationship between Canada and the U.K. is strong,” says Olga Vovk, EDC’s senior regional manager for Europe.

There are many reasons why Canadian companies should consider doing business in the U.K., including its strong economy, its membership in international organizations and its close relationship with Canada. With a population of more than 66 million people, the U.K. is also an attractive market for Canadian companies looking to expand their operations internationally.

Canadian companies looking for a foothold in the European market would do well to consider the United Kingdom as a springboard. The UK has a strong, diversified economy and is Canada's 5th largest trading partner. The UK is also highly innovative, ranked 2nd in the world for 'ease of doing business', according to the World Bank. In addition, the UK has a well-educated workforce and is home to 4 of the world's top 20 universities. Despite recent disruptions with the rollout of Brexit, the UK remains a durable springboard for Canadian companies into the European market. This is due to a UK-EU trade deal that came into force on Jan. 1, 2021. The trade deal preserves tariff-free and quota-free trade on goods, gives Canadian companies continued preferential access to the UK's services market, and protects bilateral investments. The UK is an attractive market for Canadian companies across a diverse range of sectors, including energy, renewables, infrastructure and transportation, advanced technologies and financial services. With its strong economy and favorable trade arrangement with the EU, the UK presents a compelling case for Canadian businesses looking to enter the European market.

Following the United Kingdom's withdrawal from the European Union, the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) no longer applies to the UK. In its place, the Canada-United Kingdom Trade Continuity Agreement came into force on April 1, 2021. This agreement between Canada and the UK ensures continued preferential trade access into each other's markets and the elimination of tariffs on 98% of Canadian products exported to the island nation. The agreement is a welcome development for businesses and consumers in both countries, as it provides certainty and stability during a time of transition. For businesses, it protects existing market access and provides a platform for continued growth. For consumers, it ensures that they can continue to enjoy the benefits of free trade.

The agri-food industry provides opportunities for Canadian exporters in a number of different areas. Pulses and grains, plant-based proteins, maple syrup, and seafood are all growing markets for Canadian companies. The expansion of the agri-food industry is driven by demand from both developed and developing countries. In developed countries, consumers are increasingly interested in healthy and sustainable food options. In developing countries, population growth and urbanization are driving the demand for higher-quality food. The agri-food industry is also supported by advances in technology and infrastructure. electric vehicles and batteries are becoming more common, making transportation of goods more efficient. Storage of renewable energy resources is also becoming more important as countries expand their use of wind and solar power. The UK is an attractive market for companies investing in renewables due to its continued expansion of wind and solar farms. These factors all contribute to making the agri-food industry an attractive investment for Canadian companies.

As the global economy continues to recover from the pandemic, Canadian SME businesses are well-positioned to take advantage of new trade finance opportunities. Thanks to Canada's strong relationships with key trading partners, as well as its stable banking system and well-regulated financial markets, Canadian businesses can tap into a variety of financing options to support their international trade activities. From export credits and supply chain finance to letters of credit and trade financing loans, there are a number of products available to help businesses manage the risks associated with cross-border trade. With the right financing in place, Canadian SME businesses can confidently pursue new growth opportunities in the coming months and years.

If you're looking for reliable and efficient trade financing, look no further than Habib Canadian Bank . We offer a variety of trade financing products that can meet the needs of your business, no matter what size or stage it's at.

Our team of experts will work with you to find the right product for your business, and we'll provide all the support you need to get the most out of it.

Contact us today to learn more about our trade financing products and how they can benefit your business.

Thank you for considering Habib Canadian Bank as your partner in trade financing.