Exporting to Europe: Strong ties create pathways for Canada

In today’s unpredictable global landscape—marked by shifting trade rules, geopolitical tensions and climate challenges—Canada’s strong relationship with Europe is a strategic asset for companies looking to grow and invest in new global markets.

Canada is a key international partner for Europe’s democratic nations and institutions. Our relationship is built on trust, human connections, shared values and a long history of economic collaboration.

In 2025, Canada reaffirmed these connections and announced initiatives for further co-operation in joint statements with the United Kingdom (U.K.) and the European Union (EU).

With our common commitments to the rule of law, fighting climate change, human rights and open trade, Europe offers a stable, reliable and welcoming business environment for Canadian companies seeking market diversification opportunities.

The best part? You don’t have to go it alone. Export Development Canada (EDC) helps Canadian companies diversify globally. We have trade representatives across Europe who can advise you on your export strategy, connect you with our extensive network of partners and resources, and fuel your expansion by helping you access financing and mitigate risks.

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What are Canada’s trade advantages in Europe?

Europe is home to more than 500 million affluent consumers who make a ready market for Canadian goods and services. Canadian exporters and investors enjoy preferential access to these potential customers through these free trade agreements (FTAs) with Europe:

Canada-European Union Comprehensive Economic and Trade Agreement (CETA)
Canada-United Kingdom Trade Continuity Agreement (Canada-U.K. TCA)
Canada-European Free Trade Association Free Trade Agreement (CEFTA)
Canada-Ukraine Free Trade Agreement (CUFTA)

In recent years, Brexit (Britain’s withdrawal from the European Union) rapidly transformed trade between the U.K. and the rest of Europe, adding complexity and uncertainly to the flow of goods. New tariffs imposed by the United States have also impacted European trade patterns. These disruptions have created an opening for Canada, which enjoys stable and ongoing trade relationships with the U.K. and the EU, backed by our FTAs. Canadian businesses can fill the gaps left by Brexit and tariff barriers in sectors like agriculture, energy, finance and technology.

What does Canada export to Europe?

Top Canadian exports to Europe include:

Metal and non-metallic mineral products
Aircraft and other transportation equipment and parts
Industrial machinery and parts
Farm, fishing and intermediate food products

What Canadian exporters need to know about Europe’s 2026 market

The 57 markets within Europe run the gamut from small to large, mature to emerging, specialized to diversified. This mix provides opportunities for Canadian companies of all sizes, across virtually all sectors.

Over the past decade, Europe has faced a complex mix of challenges to economic growth, stemming from both internal structural issues and geopolitical pressures, including:

an aging population
persistent inflation since the COVID-19 pandemic
post-Brexit impact on the continent’s relationship with the U.K.
trade uncertainty from changing rules and new tariffs
the rise of populist and nationalist movements in some member states
Russia’s continued war of aggression on Ukraine

Despite these pressures, EDC’s Global Economic Outlook forecasts moderate growth of 1% in 2025 and 1.3% in 2026 for the Euro Area.

The European Union

The EU is Canada’s second-largest trading partner, with bilateral trade of $118 billion in 2024. It includes 27 countries and an estimated population of 511 million. The EU is the world’s largest trading bloc and second-largest economy by nominal gross domestic product (GDP).

Of the bloc’s 27 member states, 19 have adopted the euro, the EU’s common currency. These markets are collectively called the Eurozone. Industrial supply chains are deeply integrated across the EU, and the bloc enjoys preferential access to key non-EU markets on the continent.

While their economies and regulatory regimes are tightly connected, each market within the EU has unique characteristics. Exporters should carefully research individual markets when considering export opportunities in the EU.

Non-EU markets in Europe

The U.K. is the largest European market outside the EU. With a population approaching 70 million and US$ 3.8 trillion nominal GDP, the U.K. is an attractive market for Canada and the largest destination for Canadian direct investment in Europe.

Switzerland, Norway, Iceland and Liechtenstein aren’t in the EU, but participate in the European single market.

Türkiye participates in the EU Customs Union and is a candidate for full EU membership, but negotiations on its acceptance haven’t moved forward in the past decade.

Nine additional states are candidates to join the EU, with no established timeline for their acceptance: Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia and Serbia in the Western Balkans, and Georgia, Moldova and Ukraine in Eastern Europe.

Which sectors offer the best export opportunities in Europe?

EDC market intelligence sees alignment between regional demand and Canadian capabilities in the following sectors:

Agri-food and agriculture

Europe contains more than half a billion consumers who appreciate high quality food products. Our trade agreements have eliminated most tariffs from Canadian agri-food exports, giving Canada a competitive advantage.

Opportunities in Europe’s agri-food industry aren’t limited to selling farm equipment and food. European farming and agriculture are changing, and sectors less obviously related to food production, such as GenAI and nanotechnologies, are assuming an increasing role in the industry. This is opening a rich source of business opportunities for Canadian companies across many sectors and subsectors, especially in digitalization, cleantech, advanced manufacturing, sustainability, water and wastewater management, and private-label products.

Cleantech and energy

The EU is a global leader in climate action and one of the world’s most promising markets for decarbonization and energy transition.

The European Green Deal, announced in 2019, includes investments in innovation, clean technology and green infrastructure to meet the EU’s goal of climate neutrality by 2050. Under the REPowerEU Plan, all industrial producers in the EU must include at least 40% renewable power in their energy supply mix by 2030.

The EU’s push to decarbonize and diversify its energy sources took on new urgency after Russia’s full-scale invasion of Ukraine in 2022 spiked prices and revealed the risk of relying on fossil fuel exports from a hostile power. In 2025, the EU released a roadmap to fully end dependency on Russian energy imports while providing affordable alternatives for citizens and industry.

Given these priorities, countries throughout Europe have a strong appetite for Canadian cleantech solutions and energy. Our main renewable exports include:

hydroelectric turbines and generators
wind turbines
smart grid technologies
geothermal heat pumps

Canada also has major advantages in the water and wastewater space, given our advanced infrastructure. Some of the most promising areas for Canadian business include efficiency, automation, sewage treatment and spillage and pollution reduction.

Continental defence and Ukraine reconstruction

Russia’s ongoing war against Ukraine has upended post-Cold War assumptions about European security. With the second Trump administration demanding higher military spending from its NATO (North Atlantic Treaty Organization) partners, European states and the EU have committed to scale up and diversify the continent’s defence and security sector.

Reliable partners, like Canada, have acknowledged the importance of guaranteeing Ukraine’s security. In June, 2025, Canada signed a strategic defence and security partnership with the EU. The agreement enables Canadian firms to participate in the EU’s $1.25-trillion ReArm Europe Plan/Readiness 2030, which aims to rapidly increase European defence spending through a variety of financial mechanisms.

When Russia’s war of aggression ends, Ukraine will face a daunting task of rebuilding its shattered economy and infrastructure. Canadian companies participating in the reconstruction of Ukraine will have significant opportunities to contribute across nearly every sector—from engineering and agri-food to health care and technology. EDC continues to monitor the situation and remains committed to supporting Canadian companies interested in exporting to this market.

Critical minerals

Creating a diversified and resilient supply chain for critical minerals is a strategic priority for the EU. As the top western producer of aluminum, nickel, platinum and a source of copper, Canada has the potential to bring a significant amount of critical minerals into production, supporting the EU’s electrification, decarbonization and national security. Canada-EU co-operation on critical minerals offers strategic opportunities for Canada’s mining sector.

Country spotlight

Which market in Europe is the best fit for your company’s strategy and capabilities? There are many options, but EDC market intelligence sees exciting potential for Canadian exporters in the following countries.

Canadian companies looking to expand across the Atlantic should consider the United Kingdom (U.K.) as a target market. Home to 69 million people, the U.K. is the sixth-largest economy in the world as measured by gross domestic product (GDP), with many diversified markets that are highly integrated with the European Union. The U.K. is a global leader in financial services, creative industries, life sciences, aerospace and renewable energy.

The U.K. is an attractive destination for Canadian businesses because of its:

Shared language, culture, and legal system
Strong innovation and research capabilities
Access to a large and affluent consumer market

The U.K. is now Canada’s second-largest destination for total exports of goods and services (C$40.2 billion), edging out China (C$38.1 billion) in 2024.

Canadian companies operating in the U.K. can benefit from the Canada-U.K. Trade Continuity Agreement (Canada-U.K TCA), which entered into force on April 1, 2021. This agreement preserves the main benefits of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), including the elimination of tariffs on 98% of products exported to the U.K. This means Canadian exporters continue to have preferential access to the U.K. market.

In December 2024, the U.K. became a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Canada and 10 other countries. While Canada has yet to ratify the U.K.’s accession into the CPTPP, their inclusion could enhance trade opportunities between Canada and the U.K.

Despite tariffs and other global trade challenges, the U.K. represents a major export opportunity for Canadian companies of every size.

Top Canadian exports: Metals and non-metallic minerals, energy products, consumer goods, agri-foods Metal and non-metallic mineral products, commercial services, energy products, aircraft and transportation equipment and parts, consumer goods, farm/fishing and intermediate food products.
Canadian merchandise exports total value (2024): $28.3 billion
Growth rate of Canadian merchandise exports, last 5-year average: 3%
International trade agreement with Canada: Canada-U.K. TCA 
GDP (2024 nominal): US$3.62 trillion
GDP per capita, PPP, real (2024):  US$45,469

Source: Haver Analytics, EDC Economics

Learn more about doing business in the United Kingdom

Germany is a strong option for Canadian companies looking to grow their business in Europe. With 84.6 million people, Germany is the most populous country in the European Union (EU). It’s the biggest economy in Europe and the world’s third-largest economy . Germany also boasts a strong and diverse economy that excels in sectors such as manufacturing, engineering, renewable energy, biotechnology and digital innovation.

Germany offers many advantages for Canadian businesses:

A large and affluent consumer market with high demand for quality products and services
A strategic location in the heart of Europe with excellent transportation and logistics infrastructure
A supportive and stable business environment with a skilled and educated workforce

Germany and Canada have a long-standing and friendly relationship that covers trade, investment, science and technology, and culture. We also share common values, like a strong belief in democracy, human rights, security, climate change and multilateralism.

Germany is Canada’s largest merchandise export market in the EU, and its fifth-largest trading partner globally. In 2024, two-way merchandise trade totaled $26.5 billion. Germany and Canada are also significant trading partners in services.

Canada and Germany benefit from the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), which entered into force provisionally on Sept. 21, 2017.

Top Canadian exports: Consumer goods, energy products, metals and minerals, machinery, transportation equipment, chemical products
Canadian merchandise exports total value (2024): $6.76 billion
International trade agreement with Canada: CETA
Growth rate of Canadian merchandise exports, last 5-year average: 1%
GDP (2024 nominal): US$4.66 trillion
GDP per capita PPP, real (2024): US$52,784

Source: Haver Analytics, EDC Economics

Learn more about doing business in Germany

France is the second-largest economy in the European Union and a leading cultural and tourism destination. It’s also a highly influential and diverse nation, with a strong presence in sectors like aerospace, agri-food, cleantech, fintech and life sciences.

France is an attractive target for Canadian exports due to its:

Shared culture, language, and values
Highly skilled and productive workforce
Commitments to sustainability, democracy, and innovation

In 2024, bilateral merchandise trade between our two countries totalled $14.3 billion and Canadian merchandise exports to France were just under $4.4 billion.

There’s still a great deal of unrealized potential for Canadian companies in France—especially for small- to medium-sized enterprises (SMEs)—as France and Canada both benefit from the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

Top Canadian exports: Aircraft and transportation equipment, metal ores and non-metallic minerals, agri-food products, consumer goods
Canadian merchandise exports total value* (2024): $4.39 billion
International trade agreement with Canada: CETA
Growth rate of Canadian merchandise exports, last 5-year average: 1%
GDP (2024 nominal): US$3.16 trillion
GDP per capita PPP real (2024): US$45,389

Learn more about doing business in France

In addition to being one of the world’s premiere cultural and tourist destinations, Italy has the third-largest economy in the Eurozone and is a close Canadian ally. This shared relationship makes Italy an attractive target for Canadian exports, along with:

Leadership position in design, culture and innovation
Shared cultural heritage and connections with Canadian-Italian communities
Strategic location as a potential gateway to Europe, Africa and the Mediterranean

Merchandise trade between Canada and Italy totalled $15 billion in 2024, and there’s lots of room for that number to grow as more companies take advantage of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).

Top Canadian exports: Farm, fishing and food products, consumer goods, energy products
Canadian merchandise exports total value* (2024): $3.3 billion
International trade agreement with Canada: CETA
Growth rate of Canadian merchandise exports, last 5-year average: 1%
GDP (2024 nominal): US$2.36 trillion
GDP per capita PPP, real (2024): US$44,500

Source: Haver Analytics, EDC Economics

Learn more about doing business in Italy

Poland offers opportunities for Canadian firms looking for a foothold in Europe. The EU’s sixth-largest economy boasts a population of 36.5 million and a diverse mix of industries, from manufacturing to high-tech. Poland offers ample scope for trade, investment and collaboration.

Poland is a sound choice for Canadian business investment because of its:

Stable political environment and sound institutional system
Business-friendly government policies and openness to trade
Strong human capital and central location

Poland is also a leading transportation and logistics hub, with a well-developed road and rail network, several seaports and airports, and access to the Baltic Sea. And foreign investment in Poland is paying off: In 2020, the United Nations Conference on Trade and Development ranked Poland second in Europe in terms of return on investment (ROI) for foreign investors.

Canadian companies operating in Poland can leverage the country’s free trade agreements, including the Comprehensive Economic and Trade Agreement (CETA), to tap into additional markets in Europe and beyond.

Many Canadian companies are capitalizing on opportunities in Poland. In 2024, Canadian exports to Poland were $1.13 billion. According to the Trade Commissioner Service (TCS), there’s still significant untapped potential for Canadian companies, including small- to medium-sized enterprises (SMEs), in agri-food and seafood, cleantech, fintech, and life sciences, among other sectors.

Top Canadian exports: Machinery, transportation equipment, chemical products
Canadian merchandise exports total value (2024): $1.13 billion
International trade agreement with Canada: CETA
Growth rate of Canadian merchandise exports, last 5-year average: 0%
GDP (2024 nominal): US$904.511 billion
GDP per capita PPP, real (2024): US$38,175

Source: Haver Analytics, EDC Economics

Canadian business expansion in Europe

Large and affluent population
Trade agreements have removed most barriers
Skilled workforce and highly developed infrastructure
Strong and stable rule of law
Lots of existing trade in goods and services

Europe is a vast and lucrative market for Canadian business. Trade agreements have removed most of the trade barriers, making this huge market of 445 million consumers a tempting target for our nation’s entrepreneurs. Canadian exports to the EU have already risen by 17% since the implementation of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and that’s just the beginning.

Highly competitive business environment
Diverse and complex regulatory requirements
Different cultural norms and some language barriers
Different tax requirements
Political and economic uncertainty

Canadian firms looking to break into Europe should be well-prepared for potential hurdles. Lots of challenging regulations, competition from locals and persistent political and economic uncertainties make Europe a rewarding, but challenging market for potential exporters. To succeed, Canadian entrepreneurs must understand and comply with U.K./EU rules, adapt to local markets and offer quality and value above and beyond what discerning European customers can find domestically.

EDC support for Canadian exporters: How we connect the dots

Finding new customers, suppliers and partners, understanding the local business culture and trade laws, and working out the logistics of shipping your goods are just a few of the challenges of doing business beyond our borders. 

But you don’t have to go it alone. Canada has a network of trade-related organizations that work together to help you do business internationally. Working with the Trade Commissioner Service’s officers abroad, EDC can connect you with reputable and vetted local agents, distributors, lawyers, accountants, translators, cultural and linguistic interpreters, customs brokers, government representatives and potential buyers throughout Europe. 

We also offer solutions for financing, managing risk and growing working capital to help Canadian companies do business globally. 

Power your European expansion

A meeting between five businesspeople of various ethnicities, two of them shaking hands

Trade Commissioner Service (TCS)

Canada’s TCS helps Canadian businesses expand by providing practical, actionable advice on foreign markets. The TCS in Britain and the EU provides on-the-ground intelligence to help Canadians navigate European rules and regulations, take advantage of existing trade treaties, and make timely and cost-effective decisions. It also helps connect Canadian businesses with international opportunities and funding and support programs through their worldwide network of trade commissioners.

TCS clients can be:

Small, medium or large companies
Foreign divisions of companies registered or incorporated in Canada
Qualified clients represented by consultants, suppliers, agents and students

Two workers on a rooftop installing solar panels

European Bank for Reconstruction and Development (EBRD)

Founded in 1991, the EBRD can help to identify new opportunities for Canadian companies doing business in select countries that are transitioning towards open, market-oriented economies. Because Canada is a founding member of the EBRD and an important contributor to its work, Canadian businesses can bid on EBRD-financed projects in Central and Eastern Europe, Central Asia, and the Southern and Eastern Mediterranean.

Canadian companies can also leverage the EBRD’s Trade Facilitation Program (TFP) to support transactions in the EBRD’s countries of operation, enabling you to seize opportunities in markets you may not have otherwise considered—confident that the EBRD will oversee and guide every project it backs.

Canada’s FTAs with Europe

Canada-European Union Comprehensive Economic and Trade Agreement (CETA)

CETA eliminates tariffs on almost all goods traded between Canada and the European Union, and provides enhanced access to services, investment, government procurement and regulatory co-operation. CETA also creates new opportunities for collaboration in areas such as research and innovation, clean technology, digital economy and sustainable development.

Canada-United Kingdom Trade Continuity Agreement (CANADA-UK TCA)

CANADA-UK TCA ensures that Canadian business will continue to have access to the Canadian market under the same terms as CETA. CANADA-UK TCA also provides for the continued elimination of tariffs on goods traded between Canada and the U.K. This gives Canadian exporters an advantage in U.K. markets and makes for greater stability of trade between the two nations.

Canada-Ukraine Free Trade Agreement (CUFTA)

CUFTA was signed in 2016 and provides for the elimination of tariffs on goods traded between the two countries. It also includes provisions regarding non-tariff barriers to trade, like technical regulations and sanitary measures. CUFTA gives Canadian businesses greater access to the Ukrainian market.

Frequently Asked Questions about Canada-Europe trade

What are the top sectors for Canadian exports to Europe in 2026?
Agri-food, cleantech, critical minerals, defence, and advanced manufacturing.

How can Canadian companies enter the European market?
Through trade agreements like CETA and support from EDC’s in-market experts.

Is Europe a good market for Canadian exporters in 2026?
Yes. Europe offers stability, strong demand and preferential trade access.

EDC’s Export Help Hub provides expert answers to the most frequently asked trade-related questions. Create a free MyEDC account for the answers to your questions about doing business in Europe or ask an advisor a question of your own. 

Interested in expanding to Europe?

Connect with EDC and watch your business flourish on the international stage. Answer some questions about your company and learn more about how EDC can help your company plan, connect and fuel your global expansion.

Get started with EDC

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Date modified: 2026-01-21

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Trade credit insurance

Featured

Insure your exports

Coulson Aviation’s growth

Guarantees

Featured

Trade Impact Program

Clarius grows globally

Export financing loans

Featured

Taste of Nature expands

Miovision’s sustainable path

Equity investments

Featured

GoBolt scales sustainably

Priority sectors

Cleantech leaders 2025

Business Connections Program

In the spotlight

Sector

By export stage

Featured

Strategic pricing for exporters

Global economic outlook

Market insights

Expert analysis

Digital tools

Content library

Our impact

Our commitments

Featured

Exporting to Europe: Strong ties create pathways for Canada

What are Canada’s trade advantages in Europe?

What does Canada export to Europe?

What Canadian exporters need to know about Europe’s 2026 market

The European Union

Non-EU markets in Europe

Which sectors offer the best export opportunities in Europe?

Agri-food and agriculture

Cleantech and energy

Continental defence and Ukraine reconstruction

Critical minerals

Country spotlight

United Kingdom

Germany