In light of Britain’s exit from the European Union and with the extension of the Canada-EU Comprehensive Economic and Trade Agreement (CETA), the Government of Canada has been working hard to ensure the continuity of Canada-UK trade – especially now that we are building a strong economic recovery from the COVID-19 pandemic. .
Today, His Excellency Mary Ng, Minister for Small Business, Export Promotion and International Trade, together with Elizabeth Truss, UK Secretary of State for International Trade, announced the successful completion of talks for a Canada-UK Trade Continuity Agreement – a temporary Agreement that will go into effect as Canada and Britain work toward negotiating a comprehensive free trade agreement.
As CETA is no longer in effect in the United Kingdom from 1 January 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including eliminating tariffs on 98% of Canadian products exported to the United Kingdom. This will provide a competitive advantage for Canadian exporters and businesses that will maintain preferential access to the UK market, even when the country leaves the EU.
This agreement will provide stability and predictability for businesses, exporters and workers in Canada and the United Kingdom. It will also maintain Canada’s high standards for business, workers and the environment while ensuring the continuity and efficiency of the country’s supply-managed product systems.
Canada and the United Kingdom have long shared a deep and positive relationship, with a long history of close collaboration. The Canadian government will continue to work with the UK to further enhance bilateral trade relations, including through a joint commitment to negotiate a comprehensive free trade agreement that is well suited to bilateral relations and interests. The government hopes to consult Canadians and the provinces and territories before returning to the negotiating table with Great Britain and will always prioritize the needs of Canadian workers and businesses.
Canada is committed to continuing strong and stable trade relations with the UK and EU to support our common economic prosperity.