As global trade patterns shift, governments continue to seek ways to reduce their reliance on traditional markets. In this context, the economic relationship between Ireland and Canada has assumed greater strategic importance. Longstanding cultural and historical ties are now being matched by rapidly expanding commercial links, with bilateral trade reaching record levels in recent years. However, despite the growth in trade and investment, one key element of the relationship remains unresolved. Ireland has yet to ratify the Comprehensive Economic and Trade Agreement (CETA), leaving the future of the landmark EU-Canada trade deal subject to ongoing legal and political debate.
Those historic links have increasingly been reflected in the economic relationship. Trade between Ireland and Canada has grown steadily over the past decade and has received renewed attention as Canada seeks to strengthen commercial ties beyond the US. One sector to benefit from this shift has been Irish whiskey, with restrictions on the sale of US alcohol in the Canadian province of Ontario creating opportunities for Irish producers.
The scale of growth in bilateral trade has been significant. Since 2016, trade between Ireland and Canada has increased by 391%, with bilateral trade in goods and services rising from €3.2 billion to more than €12 billion in 2024. Last year, Ireland exported €8.1 billion worth of goods and services to Canada and imported €4.1 billion. Ireland is also among the top ten investors in Canada, with inward investment flows of more than $14.3 billion.
The Irish Government hopes to build on that growth through the Comprehensive Economic and Trade Agreement (CETA), which has been provisionally applied since 2017. The agreement eliminates duties on 99 per cent of tariffs while reducing barriers to trade and investment between Canada and the European Union. However, it cannot fully enter into force until it has been ratified by every EU member state.
Ireland’s ratification of CETA has proved contentious. In 2022, the Supreme Court ruled that ratification of the agreement’s investment protection provisions would be unconstitutional under the existing legislative framework, finding that CETA tribunals could make certain awards without sufficient involvement of the Irish courts.
In response, the Government introduced the Arbitration (Amendment) Act 2026, which was signed into law on 17th of June and is intended to provide a constitutional basis for ratification. The legislation has since been challenged by Sinn Féin MEP Lynn Boylan, with the case currently before the courts.
Seventeen EU member states have now completed their national ratification processes for CETA, while Ireland remains among those yet to do so. As the legal process continues, trade between Ireland and Canada has continued to expand, reflecting the growing importance of the relationship at a time of wider uncertainty in international trade.
