UK Businesses Are Overlooking Canada's Role as a North American Gateway

Companies in the United Kingdom often approach North America through the United States first due to the United States' massive market size. But the case can be made that the UK is underusing Canada as a gateway to the continent.

Canada offers a stable, innovative economy, ease of doing business, a healthy living and working environment, and a well-educated, diverse, globally connected culture — all of which can support broader continental expansion. It is also a promising destination for global commerce also due to its steady legal environment and numerous free trade agreements.

Here's a wide-lens view of why UK firms should consider Canada more as an entry platform:

Canada's Robust Workforce and International Business Environment

Canada's hallmarks are its prowess in tech and innovation, numerous avenues of economic opportunity, cultural diversity and a high quality of life. Canada became the first country to launch a national AI strategy in 2017, and today its AI sector has close to 700 AI-focused startups.

Toronto is North America's fourth-ranked tech talent market and hosts research labs from Nvidia, Samsung and other major firms. Canada ranked second in the world on the 2024 Global Cleantech Innovation Index, and it's a global hub for AI research.

Toronto's biotech hub employs nearly 30,000 and pours in over $2 billion annually to the local economy, with strong government support and billions more coming from investments from global pharmaceutical companies.

Major hubs like Toronto, Vancouver and Montreal offer highly educated, diverse workforces. Canada's labour market has been consistently strong, and the tech sector, led by Calgary, Ottawa, the Waterloo Region and Toronto, produced some of the highest tech talent growth rates in North America between 2018 and 2023.

Through funding and policies, Canada prioritises entrepreneurship and business growth. There's also been significant venture capital investment in startups in recent years. Canada's other strong industries — real estate, manufacturing, mining, and finance — make it even more desirable for international business expansion.

Canadians enjoy clean air, abundant green space, universal healthcare, low crime rates and strong community services. Canada has one of the world's most highly educated populations, with over 60% having completed college. A highly skilled workforce not only attracts employers but also fosters a culture of knowledge and innovation.

The King's Endorsement

Further validation of Canada as a growing international economic power and a country that UK businesses can trust, familiarise, and grow with comes from King Charles III.

In his Speech from the Throne to the 45th Parliament of Canada, he referenced the historical and cultural ties between the UK and Canada. He recalled World War II, when Canadians fought alongside UK soldiers and other Allied forces.

He praised Canada as a 'bold, ambitious, innovative country' and said there is 'an opportunity for Canada to embark on the largest transformation of its economy since the second World War.'

Noting that Canada 'has what the world needs and the values the world respects,' King Charles III added: 'Canada is ready to build a coalition of like-minded countries that share its values, that believe in international co-operation and the free and open exchange of goods, services, and ideas. In this new, fast-evolving world, Canada is ready to lead.'

King Charles III went on to say that Canada can 'become the world's leading energy superpower in both clean and conventional energy ... build hundreds of thousands of good careers in the skilled trades,' and evolve into 'the world's leading hub for science and innovation.'

Partnerships With Canada To Expand Regionally

UK companies can expand into North America by using Canadian partnerships to access the broader U.S. and Canadian markets.

One option is leveraging the Canada-UK Trade Continuity Agreement (Canada-UK TCA), a free trade agreement ensuring stable, preferential trade between Canada and the UK The agreement makes it easier for UK businesses to enter the Canadian market, eliminating tariffs and other barriers that can obstruct international trade.

Canada and the UK also are members of the Commonwealth, which facilitates trade relations. The UK can also tap into regional innovation hubs, partnering with Canadian firms in tech, finance, or energy clusters located in Ontario, British Columbia, or Quebec.

The Role of Immigrant and Diaspora Networks in Market Access

Canada is known for its inclusive and diverse society. According to the 2021 census, nearly one-quarter of the population is foreign-born. Its openness to immigration attracts global talent and helps drive economic growth and strengthens its culture. About 3 million Canadians live outside Canada's borders.

Canada's greatest resource and value is its people and their global connectivity. What's powerful about the Canadian diaspora is not just its size but its spirit. Canada's diverse diaspora communities throughout the world are a unique asset that can facilitate interest-based partnerships.

As Canadian business leader Muraly Srinarayanathas noted: 'Our diasporas can be a secret weapon in interest-based diplomacy. They have the language, the contacts, the cultural know-how to create win-win projects others might miss. We should empower them as bridge builders.'

Canada's government has urged the country to attract top global talent to join its hotbed of innovation, tech, and entrepreneurship. While Canada has suffered a significant brain drain, the trend is reversing.

Many doctors and engineers who fled to the U.S. for higher-paying jobs are returning, realising that Canada may be a safer and more stable option. Young immigrants, too, often return to Canada.

A Gateway to Global Growth

A country known for its friendliness is also business-friendly, and all of Canada's many pluses certainly outweigh the minuses in regard to being a gateway for the UK to North America. The UK is one of many countries that could benefit from more partnerships and trade with Canada, as well as by expanding business interests there.

Canada continues to attract people from around the world, and its strategic location, highly skilled workforce, and cultural diversity create a great environment for businesses focusing on long-term growth in a globally competitive age.

About the Contributor: Kumaran Nadesan, author of The Impolite Canadian: Why Playing Nice Is Costing Us the Future, is the Group Chief Executive Officer of 369 Global, a Canada-based group of companies with business interests in skills training and workforce development, media and communications, and global market facilitation.

Nadesan worked for the Government of Ontario for 15 years before joining 369 Global, holding several senior roles. His focus on innovation, program design, and values-based leadership earned him numerous public service awards.

In 2024, he was named 'Inspirational Leader of the Year' at the National Business Awards by CanadianSME Magazine. He has co-founded several initiatives in Canada and frequently comments on Canadian identity, civic leadership, and global issues.

He holds a BA (Hons.) from the University of Toronto Scarborough and a graduate certificate in strategic public management from the Schulich School of Business, York University.