Canada adopts a "controlled engagement policy" in its ties with the Democratic People's Republic of Korea (DPRK) and has imposed further sanctions to punish the DRPK's accused sinking of a South Korean warship, Foreign Minister Lawrence Cannon said Thursday.

"Canada takes a principled stand against those who recklessly commit acts of aggression in violation of the international law," Cannon said.

"The adoption of a controlled engagement policy and the imposition of special economic measures send a clear message to the North Korean government that its aggressive actions will not be tolerated," he said.

Under the "controlled engagement policy", Ottawa will end discussions on economic cooperation and cultural exchanges, and limit its official contact with Pyongyang.

"The controlled engagement policy will allow Canada to advocate on key issues important to Canadian interests, including regional security, nuclear non-proliferation, the six-party talks, human rights and inter-Korean relations," Cannon said.

The new economic sanctions include a prohibition on imports from and exports to the DPRK except for humanitarian needs.

The measures also include a ban on new investment in the DPRK by Canadians and people living in Canada, as well as on the provision of Canadian financial services for and the transfer of technology, including technical data, to the DPRK.

DPRK-registered ships and aircraft will be prohibited from docking or landing in Canada or passing through Canada, a ban mainly symbolic as aircraft and ships from the DPRK rarely come to Canada.

"Canada urges North Korea to seek a path that will lead to lasting peace and decreased tensions on the Korean Peninsula and to major improvements in the lives of North Korean citizens," Cannon said.

After South Korean corvette Cheonan with 104 crew members on board sank near the maritime border with the DPRK on March 26, killing 46 sailors, a multinational investigation, which included three Canadian naval experts, concluded that the vessel was sunk by a DPRK torpedo, a claim denied by Pyongyang.

Canada is now engaged in negotiations with South Korea to re-open its market to Canadian beef.

Canada, which established diplomatic relations with the DPRK in February 2001, suspended the ties in May. There are no embassies between the two nations which have very little trade.