This blog is provided for informational purposes only and does not constitute legal, financial, or professional advice. While the information has been compiled from government and industry sources believed to be reliable, regulations and trade agreements are subject to change and may vary by product category, destination country, and shipment value.
Readers are responsible for verifying the applicability of any information to their specific business circumstances and are encouraged to consult with trade advisors, customs brokers, or other qualified professionals before acting on the content provided. Freightcom assumes no liability for actions taken based on this material.
For many Canadian eCommerce sellers, the US feels like the easiest next step for expanding sales. But putting all your eggs in one basket can be risky—especially with changing tariffs and regulations.
The good news? Canada has trade agreements with more than 50 countries worldwide, giving you access to major markets across Europe, Asia-Pacific, and the Americas. These agreements lower or even remove tariffs, making it easier and more affordable to sell your products overseas.
If you’re looking to grow your online store beyond the US, here’s what you need to know about the trade agreements that can help you do it.
Key Trade Agreements That Open Doors
The following are summaries of some of the most viable trade agreements that Canada currently has with its international trading partners. Please note that while these summaries are meant to be comprehensive, Freightcom does not provide shipping services for some of the goods listed (meat and dairy products, fish and seafood products, alcohol).
CETA connects you to 27 European Union countries, eliminating tariffs on 98–99% of Canadian goods—from packaged foods to industrial products. It also gives access to European government contracts, creating opportunities for sellers in tech and infrastructure.
CETA Coverage
- Consumer Packaged Goods (CPG)
- Apparel & Textiles: Most Canadian clothing, outerwear, and accessories enter the EU duty-free. Some sensitive categories (certain footwear and textiles) had phase-out schedules, but by 2024 virtually all are duty-free.
- Jewelry & Accessories: Precious metals, semi-precious stones, fashion jewelry, watches, and accessories qualify for zero tariffs.
- Food & Beverage Products
- Packaged Foods: Snack foods, baked goods, confectionery, sauces, jams, and cereals are largely tariff-free.
- Seafood & Fish Products: One of the biggest wins — Canadian lobster, crab, salmon, and other seafood products (fresh, frozen, or processed) now enter the EU duty-free.
- Beverages: Maple syrup, spirits, craft beer, and wine see duty elimination, though EU regulations on alcohol labeling and standards still apply.
- Meat & Dairy: Tariffs are reduced/eliminated, but subject to quotas (e.g., beef, pork, cheese). Good for exporters who can manage quota access.
- Natural Health, Beauty & Wellness Products
- Cosmetics & Skincare: Duty-free access for lotions, creams, soaps, and natural beauty products.
- Nutritional Supplements & Vitamins: Most qualify, but companies must comply with EU health regulations and packaging standards.
- Home & Lifestyle Goods
- Furniture & Home Décor: Canadian wood furniture, kitchenware, and decorative items are tariff-free.
- Household Appliances & Small Electronics: Covered under industrial goods; subject to EU safety and CE marking requirements.
- Eco-friendly Products: Reusable containers, sustainable lifestyle goods, and eco-packaging align well with EU consumer demand.
- Technology & Industrial Components (for B2B eCommerce)
- Electronics Components, Machinery, Tools: Duty-free and eligible under CETA, often relevant for online B2B trade.
- ICT Equipment & Software-embedded Devices: Zero tariffs, though compliance with EU technical standards (CE mark, data rules) is required.
CETA Key Considerations for eCommerce Sellers
- Regulatory Compliance: Even if tariffs are eliminated, goods must meet EU labeling, safety, and consumer protection laws (CE marking, REACH chemical compliance, food labeling in multiple languages).
- Rules of Origin: To qualify for CETA benefits, goods must meet origin requirements (substantial Canadian production or qualifying inputs).
- Logistics: Shipments under €150 value (approx. CAD $240) into the EU can benefit from simplified customs (the EU’s de minimis threshold) — a sweet spot for D2C eCommerce sellers.
- VAT (Value Added Tax): Tariffs are waived, but VAT still applies at the destination country rate. Canadian sellers often use an EU marketplace (Amazon, Shopify EU, etc.) or an IOSS registration to simplify collection.
Even in the wake of Brexit, Canadian sellers are still able to access the UK market with relative ease. With the TCA, about 99% of Canadian exports to the UK are duty-free, making it an attractive market for food, drinks, and consumer goods.
TCA Coverage
- Consumer Packaged Goods (CPG)
- Apparel & Footwear: Duty-free entry for most clothing, footwear, and fashion accessories. This includes outerwear, athletic apparel, and leather goods.
- Jewelry & Watches: Both precious metal jewelry and fashion jewelry are covered; zero tariffs give Canadian brands an edge in the UK’s large online jewelry market.
- Food & Beverage Products
- Packaged & Specialty Foods: Snack items, baked goods, cereals, confectionery, condiments, and sauces benefit from zero tariffs.
- Seafood & Fish Products: Canadian lobster, crab, scallops, and salmon enter duty-free — highly valued in the UK’s restaurant and retail sector.
- Maple Syrup & Beverages: Iconic Canadian products like maple syrup, craft beer, cider, and spirits are covered. Wine also benefits, though labeling rules apply.
- Meat & Dairy: Duty reductions/eliminations are available but subject to quotas (e.g., beef, pork, cheese). Exporters must secure quota access to benefit fully.
- Beauty, Health & Wellness Products
- Cosmetics & Skincare: Duty-free for soaps, creams, lotions, and organic beauty products.
- Natural Health Products & Supplements: Vitamins and wellness products qualify, provided they meet UK health labeling and regulatory requirements.
- Home & Lifestyle Goods
- Furniture & Wood Products: Canadian wood furniture, cabinetry, and home décor items are tariff-free.
- Kitchenware & Household Goods: Duty-free access for small appliances, cookware, and utensils (compliance with UK electrical/safety standards required).
- Eco-Friendly Goods: Strong demand in the UK for sustainable packaging, reusable containers, and low-carbon lifestyle goods.
- Technology & Industrial Goods (B2B eCommerce)
- Machinery, Tools, & Components: Duty-free, useful for B2B sales via eCommerce channels.
- ICT & Consumer Electronics: Covered under industrial goods, but must comply with UKCA (post-Brexit version of CE) marking and UK-specific safety standards.
TCA Key Considerations for Sellers
- Rules of Origin: Goods must qualify under Canadian or UK origin rules to benefit. Canadian-made or substantially transformed goods are eligible.
- Regulatory & Labeling: The UK has retained much of EU-style regulation post-Brexit but with UK-specific requirements (e.g., UKCA marking replacing CE for many products).
- De Minimis Threshold: Shipments under £135 (approx. CAD $250) can be imported with simplified customs — highly relevant for D2C eCommerce.
- VAT (Value Added Tax): Still applies at the UK rate. Canadian eCommerce sellers must register for UK VAT or use marketplace VAT collection systems (e.g., Amazon UK handles VAT).
- Market Trends: UK consumers are especially receptive to sustainable, natural, and premium Canadian goods like seafood, maple products, and outdoor lifestyle brands.
The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) links Canada to markets like Japan, Australia, New Zealand, Singapore, and more. When fully rolled out, about 99% of tariff lines will be duty-free. Japan, in particular, presents big opportunities for Canadian food exports.
CPTPP Coverage
- Consumer Packaged Goods (CPG)
- Apparel & Footwear: Most clothing, footwear, and fashion accessories enter CPTPP markets duty-free. Especially attractive for Australia, New Zealand, and Singapore where Western brands carry strong appeal.
- Jewelry & Accessories: Tariff elimination on jewelry, leather goods, and watches creates opportunities in high-income markets like Japan and Singapore.
- Food & Beverage Products
- Japan:
- Major gains in beef and pork — tariffs phased down or eliminated.
- Pulses (lentils, peas, beans) enter duty-free — Canada is a world leader in pulse exports.
- Seafood such as lobster, crab, and salmon sees immediate duty elimination.
- Australia & New Zealand: Zero tariffs on Canadian packaged foods, snack products, and beverages.
- Vietnam & Malaysia: Growing demand for processed foods, cereals, confectionery, and beverages.
- Chile, Peru, Mexico: Duty-free access for Canadian cereals, seafood, and processed foods supports regional trade.
- Health, Beauty & Wellness
- Cosmetics & Skincare: Duty-free for lotions, creams, soaps, and organic beauty products, with strong demand in Southeast Asia.
- Nutritional Supplements & Wellness Goods: Vitamins, nutraceuticals, and natural health products qualify, but must meet local regulations (especially strict in Japan).
- Home & Lifestyle Goods
- Furniture & Wood Products: Duty-free access for Canadian wood furniture, kitchenware, and home décor, with Japan and Australia as strong consumer markets.
- Eco-Friendly Lifestyle Products: Southeast Asian markets (Singapore, Malaysia, Vietnam) show increasing demand for reusable containers, sustainable fashion, and green home goods.
- Technology & Industrial Goods (B2B eCommerce)
- Machinery, Tools, and Industrial Components: Duty-free across CPTPP countries, supporting B2B digital trade.
- Electronics & ICT Equipment: Covered under industrial goods, though compliance with local safety, telecom, and labeling rules is essential.
- Auto Parts: Tariff reductions support Canadian suppliers shipping into Japan, Mexico, and Australia.
CPTPP Key Considerations for Sellers
- Rules of Origin & Cumulation: Inputs from any CPTPP country can count toward origin requirements — helpful for Canadian businesses sourcing regionally.
- Regulatory Compliance:
- Japan has strict standards for food, cosmetics, and pharmaceuticals.
- Singapore is straightforward with transparent import rules.
- Vietnam and Malaysia may require additional certifications.
- De Minimis Thresholds (Small Parcel Imports):
- Australia: AUD $1,000. (approx. CAD $1,000)
- New Zealand: NZD $1,000. (approx. CAD $1,000)
- Japan: JPY ¥10,000. (approx. CAD $100)
- Singapore: SGD $400. (approx. CAD $400)
These thresholds simplify customs clearance for direct-to-consumer shipments under those values.
- VAT/GST/Sales Taxes: Each country applies its own system (e.g., Australia’s GST applies even below the de minimis threshold for eCommerce sales).
Much like the CPTPP, the CKFTA (Canada-South Korea Free Trade Agreement) is an agreement which carries both strength in its current iteration and huge long-term potential. By 2032, almost all Canadian exports to South Korea will be tariff-free. Even now, the agreement offers strong opportunities in food, lumber, and clean-tech inputs.
CKFTA Coverage
- Consumer Packaged Goods (CPG)
- Apparel & Fashion Accessories: Duty-free for Canadian apparel, footwear, and accessories. Korea’s fashion-forward consumers are highly receptive to premium and sustainable international brands.
- Jewelry & Watches: Tariffs eliminated on jewelry, leather goods, and watches — appealing in a market with high luxury brand spending.
- Food & Beverage Products
- Seafood & Fish Products: Canadian lobster, crab, scallops, and salmon enjoy zero tariffs — strong demand from Korea’s restaurant and retail markets.
- Beef & Pork: Gradual tariff reductions, with most tariffs eliminated within phase-out schedules.
- Pulses, Grains & Cereals: Lentils, beans, and wheat products see duty elimination — Canada’s agricultural strength plays well in Korea.
- Packaged & Processed Foods: Snack items, sauces, maple syrup, and beverages (including craft beer and spirits) qualify for duty-free entry.
- Dairy Products: Partial tariff elimination with quotas — opportunities exist for cheese and specialty dairy, but exporters must manage quota access.
- Beauty, Health & Wellness Products
- Cosmetics & Skincare: Korea is the world’s beauty capital, but CKFTA ensures Canadian beauty and skincare products enter duty-free. Natural, organic, and clean-label Canadian brands align with K-beauty trends.
- Nutritional Supplements & Wellness Products: Vitamins, nutraceuticals, and functional foods qualify, though sellers must meet strict Korean Food & Drug Safety (MFDS) regulations.
- Home & Lifestyle Goods
- Furniture & Wood Products: Tariff-free entry for Canadian furniture, wood décor, and home lifestyle products — Canada’s lumber advantage adds credibility.
- Eco-Friendly Household Goods: Reusable, sustainable, and low-carbon lifestyle goods resonate with Korean consumers.
- Small Appliances & Electronics: Covered under industrial goods, though compliance with Korea’s KC certification (safety/electronics standards) is required.
- Technology & Industrial Goods (B2B eCommerce)
- Clean-Tech Components: Korea is heavily investing in green technologies (batteries, renewable energy, EV supply chain). Canadian clean-tech components and inputs benefit from duty-free treatment.
- Machinery & Tools: Tariff elimination supports B2B exports through online and distributor channels.
- ICT & Electronics Components: Duty-free but must meet Korean telecom and electronics certification requirements.
CKFTA Key Considerations for Sellers
- Rules of Origin: Goods must meet CKFTA origin requirements to benefit (Canadian-made or substantially transformed).
- Regulatory Compliance:
- Food & beverages: Korea requires labeling in Korean, plus compliance with sanitary/phytosanitary standards.
- Cosmetics: Must meet MFDS standards, ingredient approvals, and Korean-language labeling.
- Electronics: Require KC certification.
- De Minimis Threshold: Korea allows duty-free import of goods valued under KRW ₩150,000 (B2C shipments) (approx. CAD $150), making it attractive for small eCommerce parcels.
- Consumer Trends: Korea has one of the highest eCommerce penetration rates globally, with strong demand for beauty, health, premium food, and sustainable goods.
Separate from the EU agreement, this FTA with Iceland, Liechtenstein, Norway, and Switzerland, focuses on goods trade and opens doors for premium food, med-tech, and advanced manufacturing products.
EFTA Coverage
- Consumer Packaged Goods (CPG)
- Apparel & Accessories: Canadian apparel, outdoor wear, and accessories qualify for duty-free access. Norway and Switzerland in particular are attractive markets for premium and sustainable fashion.
- Jewelry & Watches: Duty-free access for Canadian jewelry and semi-precious stones. Switzerland, a global watch hub, values niche jewelry and gemstone imports for both consumer and industrial uses.
- Food & Beverage Products
- Seafood: Norway and Iceland are global seafood powerhouses, but Canadian specialty seafood (lobster, crab, scallops) gains duty-free entry and can find niches in premium restaurant and retail channels.
- Packaged Foods: Specialty Canadian goods like maple syrup, snack foods, jams, sauces, and bakery products qualify for tariff elimination.
- Beverages: Craft beer, spirits, and wine are duty-free, but each country has strict alcohol import and labeling regulations.
- Dairy & Meat: These are highly protected in EFTA states; exports face quotas and restrictions, so opportunities are limited.
- Beauty, Health & Wellness Products
- Cosmetics & Skincare: Canadian natural and organic beauty products benefit from tariff elimination, aligning with Northern Europe’s strong demand for clean-label and sustainable wellness products.
- Nutritional Supplements: Vitamins and nutraceuticals qualify, but must comply with strict EU-style regulations, particularly in Switzerland and Norway.
- Home & Lifestyle Goods
- Furniture & Décor: Canadian wood furniture and home décor items enjoy duty-free access. Premium, eco-friendly, and minimalist designs fit well with Scandinavian consumer preferences.
- Eco-Friendly Products: Strong demand in Iceland and Norway for sustainable, low-carbon household goods such as reusable containers, eco-packaging, and sustainable textiles.
- Kitchenware & Appliances: Duty-free for household items, though electronic goods must comply with EU/Swiss safety standards.
- Technology & Industrial Goods (B2B eCommerce)
- Med-Tech Devices: Switzerland and Liechtenstein are global med-tech hubs. Canadian medical devices and diagnostic products benefit from duty elimination but must meet stringent regulatory approvals.
- Advanced Manufacturing & Machinery: Duty-free access for Canadian machinery, tools, and advanced manufacturing inputs.
- Clean-Tech & Renewable Energy Components: Strong demand in Norway, Iceland, and Switzerland for sustainable energy technologies, EV parts, and green industrial inputs.
EFTA Key Considerations for Sellers
- Rules of Origin: Canadian-made or substantially transformed goods qualify.
- Regulatory Compliance:
- Food & beverages: Strict EU-style sanitary and labeling requirements (bilingual labeling often required).
- Cosmetics: Must comply with EU/Swiss cosmetics regulations, including ingredient lists and language labeling.
- Med-tech: Require conformity assessments and CE or Swissmedic certification.
- De Minimis Thresholds:
- Switzerland: CHF 5 VAT de minimis (approx. CAD $7).
- Norway: NOK 350 (approx. CAD $45).
- Iceland: ISK 13,500 (approx. CAD $130).
- Liechtenstein: Follows Swiss thresholds.
These thresholds are relatively low, meaning VAT applies on most B2C eCommerce shipments, but tariffs are eliminated.
- Consumer Trends: Scandinavian and Swiss consumers prioritize premium, sustainable, and health-oriented products.
Other Trade Agreements to Keep in Mind
While the above agreements present the most immediate advantages for Canadian businesses, the following are additional agreements to keep in mind as you develop your international growth strategy.
Modernized Agreements in the Americas
Many countries in the Americas, such as Chile, Peru, Colombia, Costa Rica, Panama, and Honduras, all have FTAs with Canada. These agreements focus on a strong demand for agri-food, wood, mining supplies, and manufactured goods.
CUFTA (Canada–Ukraine Free-Trade Agreement, modernized 2023)
The current iteration of CUFTA expanded access for agriculture and processed food products, including modernized rules-of-origin that help to streamline the process of importing goods.
How to Make the Most of FTAs
Here are some practical steps for Canadian eCommerce businesses to start taking advantage of FTAs:
- Know Your HS Code & Tariff Path – Use the Canada Tariff Finder tool to compare duty rates across markets.
- Understand Rules of Origin – Ensure your goods qualify for duty-free treatment—this may require supplier declarations or sourcing adjustments.
- Get the Paperwork Right – Many FTAs require only an origin declaration on your invoice. Train your team to avoid costly errors.
- Plan for Standards & Labeling – Food, beverage, and consumer products often need specific labeling or certifications. The CFIA can help you navigate this.
- De-Risk Export Sales – Use EDC credit insurance to protect against non-payment and provide peace of mind when working with new buyers.
- Leverage the Trade Commissioner Service (TCS) – The TCS provides market intelligence, connections to distributors, and tailored entry plans at no cost.
Fast-Moving Shortlist: Who to Target First
If you’re looking for the most promising places to expand, here’s a shortlist:
- European Union (CETA): seafood, specialty foods, spirits, wood and engineered products, rail and infrastructure equipment.
- Japan & Australia (CPTPP): premium proteins, pulses, lumber, auto and industrial components.
- United Kingdom (TCA): food and drink, apparel, wellness, and specialty consumer goods.
- South Korea (CKFTA): value-added food, forest products, machinery, clean-tech inputs.
- Switzerland & Norway (EFTA): med-tech inputs, precision manufacturing, premium packaged foods.
Checklist for Expanding into Global FTA Markets
- Select 2 non-U.S. markets where FTA duty savings deliver at least 5–10% margin gain.
- Confirm HS codes and take screenshots from the Canada Tariff Finder comparing MFN vs. FTA duty rates.
- Review rules-of-origin and secure supplier declarations (consider cumulation rules under CPTPP).
- Check SPS/labeling rules with CFIA for food or regulated products.
- Line up distributors and payment terms, then insure receivables with EDC credit insurance.
- Prepare your export paperwork (origin declarations, invoices, certificates if required) and retain for 5–7 years.
Resources to Bookmark
The U.S. will always be Canada’s largest trading partner, but it doesn’t have to be the only one. By leveraging Canada’s vast free trade agreements, Canadian businesses can diversify risk, enter high-value markets, and grow stronger in the face of global uncertainty.
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