International Trade 2026 Comparisons

Canada is a member of the World Trade Organization and is a party to plurilateral agreements such as the Government Procurement Agreement and the Trade Facilitation Agreement. Other agreements Canada is a party to include the Information Technology Agreement, the Civil Aircraft Agreement, and the Pharma Agreement. Canada also participates in several “Joint Statement Initiatives” which are plurilateral initiatives used to negotiate new potential rules within the WTO framework (ie, electronic commerce, investment facilitation for development, trade and environmental sustainability structured discussions, etc).

Canada currently has 15 free trade agreements in force. All of its free trade agreements and investment agreements can be found here.

The Canada-European Union Comprehensive Economic and Trade Agreement (CETA) has been in force since 21 September 2017, which means that most of its provisions are in effect. Currently, 17 EU member states have completed their national ratification processes for CETA. The following ten EU member states still need to ratify CETA at the national level: Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland and Slovenia.

The UK’s Accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership is not yet in force for Canada, as Canada must complete its domestic ratification process.

The Canada–Mercosur Free Trade Agreement is currently under negotiation.

The Canada–Ecuador Free Trade Agreement has been negotiated, and a comprehensive trade agreement has been reached but is yet to be signed.

The Canada–Indonesia Comprehensive Economic Partnership Agreement has been negotiated but is not yet in force.

Canada currently has ongoing negotiations with the Association of Southeast Asian Nations, the Caribbean Community, the Dominican Republic, India and Morocco.

The General Preferential Tariff is an autonomous preferential tariff treatment that provides duty-free treatment for the majority of imports from developing countries.

The Least Developed Country Tariff offers duty-free access for nearly all imports from the least developed countries.

The Commonwealth Caribbean Country Tariff provides duty-free treatment of imports from the Commonwealth countries and British Overseas Territories in the Caribbean region.

Canada is currently negotiating free trade agreements with the Association of Southeast Asian Nations (ASEAN), India and the Philippines. Canada is also exploring free trade agreements with Chile, Colombia, Mexico and Peru (the “Pacific Alliance”). Canada is also negotiating a free trade agreement with Ecuador.

Canada has updated the Investment Canada Act to strengthen provisions pertaining to economic security reviews. Canada has also imposed surtaxes on electric vehicles (100%) and steel and aluminium (25%) from China to address unfair trade practices. New measures have been announced to support the Canadian steel sector, which include tariff rate quotas, worker support and liquidity assistance. The government has also increased its enforcement of trade-related regulations.

The uncertainty surrounding US trade policy is a major issue. The upcoming review of the free trade agreement between Canada, the US and Mexico (CUSMA or USMCA) is likely to involve changes pertaining to rules of origin, digital trade, dispute resolution mechanism, etc. Supply-chain issues regarding critical minerals, economic coercion and forced labour will also be hot topics under discussion. Other emerging issues that are likely to be considered include non-tariff barriers in existing and potential trade agreements, inflation and supply-chain disruptions, and global industrial strategies and their impact on Canadian trade.

Customs matters are governed by the Customs Act, Customs Tariff and the Canada Border Services Agency Act. Several other legal instruments are involved in specific aspects of customs and trade, namely the Financial Administration Act, the Export and Imports Permits Act, the Special Imports Measures Act, the Food and Drugs Act, etc.

The Canada Border Services Agency (CBSA) administers or enforces customs law and regulations.

Canada does not have a single, unilateral legal instrument like the EU’s Trade Barriers Regulation or the US Trade Act of 1974, Section 301. Instead, it uses a combination of mechanisms to address foreign trade barriers. Sanctions and retaliatory measures are primarily administered under the Special Economic Measures Act. Countervailing and anti-dumping duties are administered under the Special Imports Measures Act. The Customs Tariff includes legal provisions for surtaxes applying to certain goods from countries Canada has determined to be carrying out unfair trade practices.

Canada continues to update its sanctions regime, as well as expand prohibitions pertaining to goods manufactured by forced labour. A greater effort has been made to avoid applying punitive measures, such as surtaxes, and to rather solve customs issues through negotiation.

Significant customs and import issues in Canada include the ongoing enforcement of the Canada Border Services Agency Assessment and Revenue Management rules, particularly the 1 January 2026 starting date for amendments to Section 17 of the Customs Act (which specify the “importer of record” as jointly and severally liable with the owner and importer for paying duties). Other major issues include securing borders against illicit goods through new legislation, potential tariff changes with China and the USA, and the ongoing digitalisation of processes to manage supply chain risks and facilitate legitimate trade.

Canada’s sanctions regime is a foreign policy tool designed to address international peace and security concerns, human rights violations, and significant foreign corruption. The laws apply broadly to all individuals and businesses in Canada, as well as Canadian citizens and corporations operating abroad.

Sanctions are imposed by means of the Special Economic Measures Act, the United Nations Act and the Justice for Victims of Corrupt Foreign Officials Act.

Global Affairs Canada administers the sanctions regime, while the Royal Canadian Mounted Police and the CBSA are responsible for enforcing it. The Financial Transactions and Reports Analysis Centre of Canada is involved in financial and reporting aspects of enforcement. The Public Prosecution Service of Canada handles prosecutions.

Individuals are included on Canada’s sanctions list through government regulations made under laws like the Special Economic Measures Act or the Justice for Victims of Corrupt Foreign Officials Act. The inclusion of individuals on the list is primarily based on the individual’s suspected involvement in human rights violations or corruption, or if they are associated with a sanctioned country or entity, such as those on a United Nations list.

The Consolidated Canadian Autonomous Sanctions List can be found here.

The inclusion of individuals on the list is primarily based on the individual’s suspected involvement in human rights violations or corruption, or if they are associated with a sanctioned country or entity, such as those on a United Nations list.

Canada imposes sanctions against countries through regulations under laws such as the Special Economic Measures Act and the United Nations Act, which can include financial and travel restrictions, arms embargoes, and trade controls. The countries listed under Canada’s Special Economic Measures Act include Belarus, China, Iran, Libya, Moldova, Myanmar, Nicaragua, North Korea, Russia, South Sudan, Sri Lanka, Syria, Ukraine, Venezuela, and Zimbabwe. Sanctions have also been imposed on the Central African Republic, Democratic Republic of Congo, Guatemala, Iraq, Lebanon, Somalia, Sudan, and Yemen.

Further information can be found here. 

Canada maintains other types of sanctions that are non list-based, primarily through sectoral sanctions, general trade prohibitions, and various restrictions that apply broadly to an entire country or specific industries within it, rather than only to named individuals or entities.

These measures are typically implemented through regulations under the Special Economic Measures Act and the Export and Import Permits Act.

Canada has the authority to apply secondary sanctions and has recently amended its regulations to do so, allowing it to target transactions with no direct nexus to Canada if these involve individuals or entities that are circumventing sanctions on a sanctioned country. This authority was expanded under the Special Economic Measures Act to let Canada designate and prohibit transactions with foreign persons or entities that do business with sanctioned regimes.       

Violating Canadian sanctions is a criminal offence that carries severe consequences, including significant fines and/or imprisonment for individuals and significant fines for organisations. The specific penalties depend on which Act the regulations fall under. Penalties can be monetary, forfeiture or imprisonment.

Canada’s sanctions laws and regulations allow for permits and certificates to authorise otherwise prohibited activities in exceptional cases. The Minister of Foreign Affairs has the authority to issue permits under the Special Economic Measures Act and the Justice for Victims of Corrupt Foreign Officials Act, while certificates may be issued under the United Nations Act. These are granted on a case-by-case basis, and there is no guarantee of approval.

Canada’s sanctions regime treats violations as criminal offences. Liability extends to both organisations and individual employees, with penalties including substantial fines and imprisonment.

Canada has sanctions-related blocking and reporting requirements that apply to individuals, entities and reporting agencies. These obligations include freezing the assets of sanctioned persons and entities, and reporting to authorities such as the Financial Transactions and Reports Analysis Centre of Canada and the Royal Canadian Mounted Police.

Canada has laws that prohibit Canadians from complying with foreign sanctions, most notably the Foreign Extraterritorial Measures Act, which prohibits compliance with the US embargo of Cuba. While Canada itself imposes sanctions, its laws also prevent Canadians from being compelled by other jurisdictions to take actions that are in conflict with Canadian law or policy.

Significant changes in Canadian customs and import measures include strengthening border security through new CBSA officers and legislation, enhancing data and security measures for imports, and updating the CBSA Assessment and Revenue Management system. Key issues include the upcoming CUSMA/USMCA review, which could increase trade uncertainty, introduce potential new tariffs on specific goods, and highlight the need for regulatory clarity on value for duty (ie, last sale or sale for export).

The creation of a Financial Crimes Agency in Canada is anticipated. Legislation expected to be introduced by spring 2026 will establish a new federal agency that will become Canada’s leading enforcement body for financial crimes, including sanctions enforcement.

The Proceeds of Crime (Money Laundering) and Terrorist Financing Act and associated regulations have been amended to increase penalties and to create a new compliance agreement framework, new obligations for certain financing sectors and a new framework to allow private institutions to share information related to sanctions evasion and money laundering.

Canadian sanctions will focus on intensified enforcement and compliance, particularly regarding Russia and the Middle East, driven by new legislative measures and increased inter-agency co-ordination.

Canada’s export control laws, governed by the Export and Import Permits Act (EIPA), regulate the export of specific goods, technology, and technical data to protect national security and meet foreign policy and defence obligations. A permit is required for items listed on the Export Control List or when exporting to a country on the Area Control List. Failure to comply can result in fines, imprisonment or seizure of goods.

The EIPA is the primary law, authorising the Minister of Foreign Affairs to control exports. Items listed on the Export Control List are administered under the EIPA. A permit is also required for any export to countries listed on the Area Control List.

The main Canadian agencies involved in export controls are Global Affairs Canada, which administers the EIPA and issues permits, and Public Services and Procurement Canada’s Controlled Goods Program, which registers and regulates controlled goods. The CBSA is also crucial, as it enforces the regulations at the border.

Canada’s export controls apply to a wide range of persons and items, including goods and technology, particularly those with military or national security significance, or those subject to international agreements. This includes items on the Export Control List, which features military and dual-use goods, nuclear and missile-related technology, chemical and biological goods, and certain US-origin items. Controls also cover specific economic goods such as certain agricultural products, lumber, and firearms, as well as persons under sanctions, such as those associated with specific countries or organisations. The Export Control List can be viewed here.

Canada maintains several lists of restricted persons, including the Consolidated Canadian Autonomous Sanctions List, and lists of terrorist entities. Individuals and entities are added to these lists for reasons such as involvement in terrorism, being a corrupt foreign official, or violating other sanctions regulations. The addition process typically involves security intelligence or criminal reports, with the final decision made by the Governor in Council.

Canada has lists of sensitive exports, most notably the Export Control List, which includes military and strategic goods, and the Sensitive Technology List, which targets emerging technologies with national security implications. Items are added through a government process governed by the EIPA and other regulations, which involves ministerial order, amendments published in the Canada Gazette, and international agreements such as the Wassenaar Arrangement.

Canada maintains non list-based export controls through sanctions, area control lists, and the Controlled Goods Program. Sanctions prohibit exports to specific countries, while the Area Control List allows for control of all goods and technology to certain countries, like North Korea. The Controlled Goods Program mandates domestic security measures for specific goods and technologies that have military or national security significance.

Penalties for violating export controls can include significant fines, imprisonment, and other consequences such as the forfeiture of goods, loss of export privileges, and increased scrutiny. The penalties depend on the severity of the offence and range from summary conviction penalties (up to CAD250,000 fine and 12 months’ imprisonment) to indictable offences (with potentially unlimited fines and up to ten years’ imprisonment). Corporate directors and officers can be held personally liable.

Canada’s export control regime provides for various types of permits and certificates that authorise activities that would otherwise be prohibited. The primary types are individual export permits, multi-destination permits, and general export permits, which are issued by the Minister of Foreign Affairs under the authority of the EIPA.

The EIPA mandates strict compliance and imposes severe penalties for violations, including substantial fines for corporations and substantial fines and imprisonment for individuals. Compliance expectations include obtaining the required permits, adhering to permit conditions, record keeping, compliance programmes, and enrolment in the Controlled Goods Program for handling and exporting military, strategic goods.

Canada has export controls-related reporting requirements, including mandatory reporting to the CBSA of goods being exported. Additionally, some general export permits require exporters to submit reports on their export volumes and consignees to Global Affairs Canada.

Canadian export controls include regulatory updates to the Export Control List to control advanced technologies like quantum computing and semiconductors, public consultations on further controls, and the introduction of new measures to the Customs Act to support the CBSA’s enforcement capabilities. Enforcement has been supported by legal and operational changes, while public attention has been focused on the strategic importance of these new controls and the need for a robust export control framework.

Significant changes and hot topics in Canadian export controls will centre on regulating emerging critical technologies (eg, AI, quantum computing), enhancing enforcement in line with G7 partners, increasing the use of unilateral controls, and the digitalisation of border processes.

The imposition of anti-dumping and countervailing duty measures is governed by the Special Import Measures Act and administered jointly by the CBSA and the Canadian International Trade Tribunal. Safeguard measures are handled separately by the Canadian International Trade Tribunal and the government under the Canadian International Trade Tribunal Act.

The CBSA and the Canadian International Trade Tribunal jointly administer the relevant legislation.

Domestic companies can petition the relevant authorities to initiate a review, especially in areas such as trade remedies under the Special Import Measures Act. While some review processes can be self-initiated by authorities like the CBSA, companies also have the ability to formally request an investigation or review of issues such as dumping or subsidising of imported goods.

Domestic companies can petition the relevant authorities on an ad hoc basis for specific reviews, while in many regulatory areas, regular periodic reviews are conducted by the authorities.

Non-domestic companies have opportunities to participate in a Special Import Measures Act review, which can include exporters, foreign producers, importers, and foreign governments. These parties can provide submissions, respond to questionnaires sent by the CBSA, and present their cases to the Canadian International Trade Tribunal.

A typical anti-dumping or countervailing duty investigation takes approximately seven months from initiation to final decision. The steps involved are:

• complaint/documentation which takes 21 days;
• an initiation decision which typically takes 30 days;
• a preliminary injury inquiry which needs to be determined within 60 days of the initiation notice;
• a preliminary determination made within 90 days of the preliminary injury inquiry determination;
• a final determination made within 90 days of the preliminary determination;
• a final injury inquiry/finding made within 120 days of the CBSA’s preliminary determination; and
• the duty imposition/duration will typically remain in effect for five years, after which an expiry review will be conducted.

The CBSA publishes notices of its conclusions and posts “Statements of Reasons” on its website. The Canadian International Trade Tribunal conducts inquiries into whether the dumping or subsidising has caused injury to a domestic industry and then issues a finding. The Canadian International Trade Tribunal publishes a notice of its report in the Canada Gazette and posts the full reports (public versions) on its website.

Canada’s trade laws, specifically the Special Import Measures Act, allow for the imposition of anti-dumping and countervailing duties and safeguards on goods from any jurisdiction if those imports are found to be causing material injury to a domestic industry.       

Existing AD/CVD duties and safeguards undergo a mandatory review every five years. The Canadian International Trade Tribunal can conduct an interim review at any time before the five-year mark. Safeguard measures have different review timelines and, in some cases, may be applied for up to three years with a possible one-year phase-out period. Find more information on the safeguard regime here.

Anti-dumping and countervailing duties and findings automatically expire after five years unless a review is initiated. The process involves two phases:

• CBSA investigation (150 days) – the CBSA determines if the expiry of the duties is likely to result in the continuation or resumption of dumping or subsidising.
• The Canadian International Trade Tribunal inquiry (160 days) – if the CBSA finds a likelihood of continued dumping/subsidising, the Canadian International Trade Tribunal will conduct an inquiry to determine if this is likely to cause an injury to the domestic industry.

If both the CBSA and Canadian International Trade Tribunal issue affirmative decisions, the duties are extended for another five years; otherwise, the order is rescinded. The CBSA may also initiate an interim review and there is also an administrative review, where the importer requests re-determination or an exporter/producer review is requested.

Appeals of anti-dumping and countervailing duty decisions in Canada involve a multi-level process that begins with the CBSA, followed by potential appeals to the Canadian International Trade Tribunal or a binational panel.

Canada has addressed trade remedies through new measures such as a 25% tariff on certain steel-derivative products, tightened border enforcement, and a series of steel-sector support programmes, including tariff rate quotas. It has also repealed retaliatory tariffs on US goods after the US removed its steel tariffs on Canadian products, and made updates to its export permit regulations to improve clarity for exporters. Consequently, investigations have been initiated and concluded for steel and aluminum products from various countries, as well as for other goods originating from various countries. The measures in force can be found here. 

Significant trends in Canadian anti-dumping and countervailing duties trade remedies include the potential for new trade tensions and resulting measures, such as reciprocal tariffs and surtaxes on certain goods like steel and aluminum. Key hot topics are the potential for trade diversion and the need for stronger, modernised trade remedy tools, including new approaches to economic security.

Canada’s investment security is primarily governed by the Investment Canada Act, which allows the government to review foreign investments of any size for potential injury to national security or for “net benefit” to the Canadian economy. The National Security Review Process can be initiated for any foreign investment, regardless of value or whether it involves acquiring control. The government has 45 days after certification of the complete investment filing to initiate a national security review. Canada’s investment security is primarily governed by the Investment Canada Act, which allows the government to review foreign investments of any size for potential injury to national security or for “net benefit” to the Canadian economy. If concerns persist after the initial screening, the Minister may issue a notice to conduct a national security review. If the Minister still believes the investment could be injurious to national security, it can be referred for a Governor in Council review. The timelines are provided in this link. 

Investment security measures in Canada are primarily administered and enforced by several federal government agencies under the authority of the Investment Canada Act. These agencies are: Innovation, Science and Economic Development Canada; Public Safety Canada; Canadian Security Intelligence Service; Department of Canadian Heritage; the Financial Transactions and Reports Analysis Centre of Canada; the Royal Canadian Mounted Police and the CBSA.

Any investment by a non-Canadian, regardless of value or the degree of control acquired, can be reviewed if the government has reasonable grounds to believe it could be injurious to national security. The acquisition of control of a Canadian business by a non-Canadian is reviewable if it meets specific, annually adjusted monetary thresholds, to ensure it is of “net benefit” to Canada.

Canada requires non-Canadian investors to file either an application for review or a notification under the Investment Canada Act for most investments, depending on the transaction’s value.

Exempt transactions include corporate reorganisations that do not change ultimate control, acquisitions by lenders realising a security interest under certain conditions, acquisitions solely for financing purposes with subsequent divestment, acquisitions of securities by traders or dealers in the ordinary course of business, control acquired through inheritance or law, and the acquisition of a branch business. Entities and items exempt from review include acquisitions of Canadian businesses run by Crown corporations or non-profit corporations. Certain acquisitions by or associated with foreign banks or insurance companies, regulated under other financial acts, are also exempt.

Failure to comply with investment security measures can lead to severe penalties, including: monetary fines and administrative penalties, disgorgement orders, legal proceedings and imprisonment, and civil lawsuits.

There are no government filing fees associated with an Investment Canada Act national security review, a “net benefit” review application, or a notification.

Key developments in Canadian investment security will include modernising the Investment Canada Act to enhance national security review powers, increased scrutiny of foreign investments from certain countries, and a growing focus on anti-money laundering efforts and environmental, social and governance disclosure. Regulatory activity will continue to be centred on bolstering government authority, implementing new reporting requirements, and improving inter-agency co-ordination to combat financial crime and protect critical assets.       

Key developments regarding investment security under the Investment Canada Act have centred on the implementation of Bill C-34 amendments, updated national security guidelines that formally include economic security, and significant litigation/enforcement in the critical minerals sector. These include expanded ministerial powers and updated national security guidelines (eg, the Economic Security and Sensitive Technology List). Increased penalties for non-compliance (eg, CAD500,000 for failing to file) are anticipated.

Canada employs several programmes to encourage domestic production, with key examples including the Duties Relief Program and the Duty Drawback Program, which allow businesses to import goods duty-free or get duties refunded, provided the goods are exported. Other incentives include the Large Enterprise Tariff Loan Facility for businesses impacted by tariffs, the Strategic Response Fund, and various clean economy tax credits, such as those for Clean Technology Manufacturing and Clean Hydrogen.

Canada uses various standards and technical requirements to reduce imports and support domestic production, including tariffs on specific goods like Chinese electric vehicles, and regulations on energy efficiency and products such as single-use plastics and hazardous materials. Other measures include rules of origin for trade agreements and controlling foreign investment in strategic sectors.

Canada’s sanitary and phytosanitary requirements, while aimed at protecting health and the environment, can indirectly reduce imports and encourage domestic production through strict science-based regulations that must be met by imported goods. These include requiring products to be from pest- and disease-free areas, mandating specific treatments (like heat treatment or fumigation) or certifications before import, and enforcing rigorous inspections and testing to verify compliance with Canadian standards.

Canada’s competition policy is primarily designed to maintain fair, open and efficient markets, while explicitly recognising the role of foreign competition. It does not inherently aim to reduce imports or encourage domestic production as a trade barrier. However, the government recently introduced tariffs and a “Buy Canadian” procurement policy to support specific domestic industries, such as steel and lumber.

Canada uses measures like tariffs, supply-side support, strategic public procurement, and investment screening to reduce imports and encourage domestic production, rather than traditional state trading or large-scale state-owned enterprises. Recent initiatives include targeted tariffs on specific goods, such as steel and aluminum, to combat unfair trade practices and surtaxes on imports like electric vehicles.

Canada will soon be implementing its “Buy Canadian” policy, which establishes explicit requirements to prioritise Canadian goods, services, and suppliers in federal government procurement, specifically aimed at reducing imports and encouraging domestic production.

Canada’s geographical indication protection measures primarily function as a form of intellectual property enforcement and are designed to prevent consumer deception regarding product origin, not to act as general trade barriers aimed at reducing imports or encouraging domestic production in a protectionist sense.

The focus of Canadian trade law will likely include an emphasis on preventing forced labour, the removal of internal trade barriers, economic security measures, and inclusive trade policies.