Enhancing EU-Canada Trade: The Power of Trusted Trader Programmes and Customs Co-operation

On 1 August 2025, the EU and Canada formalised a significant step forward in customs co-operation with the Mutual Recognition Agreement (MRA) for AEO programmes. This agreement recognises the EU’s AEO scheme and Canada’s Partners in Protection

(PIP) initiative as equivalent trusted trader programmes, delivering streamlined customs processes, enhanced security, and expedited border clearance.

Though this MRA is between the EU and Canada, its benefits also resonate for UK businesses engaged in transatlantic trade, thanks to interconnected supply chains and similar customs facilitation schemes applying post-Brexit.

What the MRA Means for Traders

By mutually recognising accredited operators, customs authorities can reduce inspections and prioritise compliant shipments, which cuts delays and lowers costs amid ongoing global supply chain disruptions. The agreement also fosters simplified compliance by acknowledging trusted partners’ status, eliminating duplicate checks and encouraging seamless exchange of up-to-date authorisation data.

Moreover, the MRA includes a business continuity mechanism—ensuring accelerated customs clearance once trade resumes after any disruption such as border closures or security alerts.

Current UK-Canada Trade Landscape and Industry Highlights

The UK remains Canada’s third-largest trading partner, with bilateral trade valued at around £38 billion ($61 billion CAD) in 2024. Key sectors include machinery, automotive components, pharmaceuticals, and food and beverage, benefiting from tariff eliminations covering 99% of goods under the Canada-UK Trade Continuity Agreement.

While tariff-free trade has preserved strong growth, agricultural sectors such as dairy and poultry still face protections limiting expansion. Investment flows between the countries—especially in technology and innovation—continue to be robust.

Leveraging CETA, Ireland, and Future UK-Canada Trade Opportunities

The EU-Canada Comprehensive Economic and Trade Agreement (CETA) remains instrumental in facilitating seamless trade, as evidenced by Ireland’s rapid export growth to Canada in pharmaceuticals, chemicals, and food sectors. This builds a compelling case for Canadian businesses using Ireland as a gateway to European markets.

Impact of US Tariffs Sparks Canada’s Strategic Shift to New Trade Partnerships

The introduction of new US tariffs and trade uncertainties prompted Canadian businesses and policymakers to actively diversify their trading relationships to reduce reliance on the US market. This shift has accelerated Canada’s pursuit of stronger trade ties with stable and tariff-friendly partners such as the UK and the European Union. With ongoing tariffs affecting key Canadian exports in sectors like steel, aluminium, and agriculture, Canada has been motivated to leverage agreements like CETA with the EU and the Trade Continuity Agreement with the UK to secure tariff-free access and supply chain reliability.

These efforts not only mitigate risks posed by unpredictable American trade policies but also open new opportunities for Canadian exporters to grow in advanced markets, backed by enhanced customs facilitation and trusted trader programmes. This strategic pivot highlights the importance of diversifying trade partnerships in today’s shifting global trade environment.

How Customs Wise Supports Your Trade Success

In this evolving trade environment, understanding and utilising programmes like the MRA is key. Customs Wise offers extensive expertise in customs compliance, tariff classification, and authorised operator accreditation, helping businesses unlock the full advantages of trade agreements and facilitate efficient border crossings.

Contact us today to learn how we can tailor solutions to your UK/Ireland-Canada trading needs and help you stay ahead in an increasingly complex global trade landscape.