UK and Canada expand cooperation on digital trade and AI

Canada and the United Kingdom have created a new partnership to strengthen the economic bond between the two countries by establishing a joint trade working group on the eve of the G7 summit in Alberta. 

The announcement came in a joint statement on Sunday as the British prime minister, Keir Starmer, paid his first official visit as head of government to Canada.

Starmer held talks with Canadian counterpart Mark Carney as part of a series of bilateral discussions to deepen existing partnerships and forge new economic cooperation. The statement said the working group will recommend its suggestions to both PMs within six months.

“We will establish a new structured UK-Canada Economic and Trade Working Group to deepen our existing trading relationship further,” the joint statement by the two prime ministers said.

The move represents a fresh promise by the two countries to recast their trading relationship during changing global economic patterns and supply line disruptions.

UK and Canada expand cooperation on digital trade and AI

The new working group will tackle market access barriers and deepen cooperation in up-and-coming areas. It has identified as priorities digital trade, the building of artificial intelligence (AI) infrastructure, and strategic alliances in critical minerals.

Canada and the UK consider these sectors central to their future economic resilience. By coordinating efforts, they want to ensure their economies become even more competitive, inclusive, and innovative in a fast-paced world market.

The move also addresses concerns inside Canada about too much reliance on US markets as Canadian industries — including steel, aluminum, and car manufacturing — continue to face tariffs and trade barriers to the US market.

Leaders advance trade pacts and strengthen military cooperation

The UK became a member of the trade bloc last year on a provisional basis, with benefits granted to it from nine Indo-Pacific markets. However, Canada and Mexico need final ratification to benefit fully from membership.

The move reiterates Canada’s determination to multilateralism and its Indo-Pacific strategy and provides a stronger presence for the UK in the region following Brexit.

In addition to their economic ties, the joint statement highlighted an expansion of defense cooperation between the two countries. Canada and the UK also reinforced the pledge to stand by Ukraine as part of wider G7 cooperation on global security.

As geopolitical tensions mount and global supply chains are strained, governments seem to be coming together on common values and strategic objectives.

The news comes as G7 leaders meet in Alberta this weekend for a three-day summit into global economic resilience, technological innovation, and international security. For Carney, the conference is an opportunity to promote Canada’s role in global trade and the green economy. It is Starmer’s first outing on the world stage since becoming leader, and he is focusing on wanting to reconnect internationally.

This reinvigorated UK-Canada partnership is a timely testament that you can never have enough tried and trusted friends in today’s unsteady global economy.

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