Canada is imposing sanctions on North Korea after the country was implicated in the sinking of a South Korean warship in March, killing 46 sailors.
In a statement issued Monday, Prime Minister Stephen Harper said sanctions will include additional restrictions on trade, investment and other bilateral relations with North Korea.
Canada will be suspending high-level visits to Canada by North Korean officials.
"Canada has condemned the reckless North Korean regime for this egregious violation of international law and its blatant disregard of its international obligations," Harper said.
Three experts from the Canadian navy joined a multinational team that investigated the March 26 incident and concluded the Cheonan was sunk by a torpedo.
On Monday, UN secretary-general Ban Ki-moon called the evidence "overwhelming and deeply troubling."
He said he expected "measures appropriate to the gravity of the situation" to be undertaken by the UN security council.
Harper said Canada will support South Korean President Lee Myung-bak's decision to respond decisively to the "act of aggression."
Lee announced that his South Korea was slashing trade to North Korea and pledged to bring the country before the UN Security Council, saying Pyongyang would "pay a price" for the sinking.
U.S. President Barack Obama also offered his full support behind South Korea's moves.
Harper's statement also adds that Canada remains committed to international response, including through the UN Security Council.
"Canada will also continue to consult and cooperate with South Korea, as well as our partners and friends, to ensure that a strong global approach is taken toward the current situation on the Korean peninsula. Canada remains committed to peace and stability in the region. We are in close contact with Canada's G8 partners on this situation," Harper said.
Experts said South Korea trade sanctions would cost North Korea about $200 million a year, a small but significant blow for the impoverished country. South Korea is North Korea's second-biggest trading partner, after China.
With files from The Canadian Press
