The agreement secured in principle between the UK and Canada, ensures that our strong partnership and trading ties will continue uninterrupted from 1st January 2021.
But what is it?
The UK’s trade deal mirrors the existing EU-Canada CETA (Comprehensive Economic and Trade Agreement) which was introduced in 2017.
Why does it matter?
The UK exported £11.4bn worth of goods and services to Canada to the end of Q1 2020.
This economic partnership agreement provides certainty for UK businesses trading with Canada and paves the way for us to start negotiating a more advanced and ambitious UK-Canada trade deal from next year, which will further deepen our connections and open up further opportunities on both sides of the Atlantic.
Furthermore, it takes us one step closer to becoming a member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – a priority for the government and a key part of our trade negotiations programme.
What are the benefits for UK businesses
The agreement in principle means that current EU-Canada trading arrangements will be rolled over with minimal changes from 1st January 2021.
All nations and regions will benefit from preferential access to Canadian markets. It benefits sectors such automotive manufacturing and food and drink, which between them provide jobs for more than half a million people in the UK.
- Here is a summary of the continuity agreement
- Safeguards tariff-free trade on 98% of goods exported to Canada
- Secures future zero tariffs on key UK manufacturing exports including vehicles and parts
- Maintains zero tariffs on food and drink exports including beef, fish and seafood, chocolate and confectionery, fruit and vegetables, bread and pastries
- Guarantees tariff-free access to the Canadian market for British wine and spirits
- Ensures the Canadian market remains open for UK services and provides a framework to recognise each other’s professional qualifications for accountants, architects, engineers and lawyers
- Assures protection of Intellectual Property owned by UK businesses or individuals
- Continues to protect UK products with the status of Geographical Indications sold in Canada
- Supports the creation of opportunities for UK suppliers to bid for public sector contracts in Canada
- Encourages more investment between the UK and Canada
For more information from GOV.UK click here.