United Kingdom (U.K.) and Canada have struck a rollover trade deal tiled, ‘U.K.-Canada Trade Continuity Agreement’, today, i.e., Saturday, November 22, 2020 which ensures the flow of U.S. $ 27 billion-worth (£ 20.32 billion) of goods and services between the 2 nations, after the Brexit transition period is over.
The Prime Minister of U.K. – Boris Johnson and President of Canada – Justin Trudeau approved the deal in principle during a video call. The terms of the deal would remain same as they are while U.K. is a part of European Union (E.U.).
The deal paves the way for a separate tailor-made trade agreement next year covering more areas such as digital trade, small businesses, the environment and women’s economic empowerment. The 2 leaders also agreed to start talks on a bespoke agreement next year.
U.K. and Canada’s trade terms are currently governed under ‘Canada-European Union Comprehensive Economic and Trade Agreement’ (CETA). But after the Brexit transition period is over, CETA will no longer apply to U.K.
Speaking during the call, Johnson said, “Our negotiators have been working flat out to secure trade deals for the UK and from as early next year we have agreed to start work on a new, bespoke trade deal with Canada that will go even further in meeting the needs of our economy.”
Taking it to twitter, Johnson tweeted, “Great to speak with @JustinTrudeau, @mary_ng and @trussliz today to secure a fantastic trade agreement for Britain. British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength.”
Great to speak with @JustinTrudeau, @mary_ng and @trussliz today to secure a fantastic trade agreement for Britain.
— Boris Johnson (@BorisJohnson) November 21, 2020
British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength. 🇬🇧🇨🇦 pic.twitter.com/3Ulmva0GLi
Welcoming the continuity deal, Trudeau suggested a new comprehensive trade agreement with the U.K. would take several years to negotiate.
Talking about the deal, Trudeau said, “Now we get to continue to work on a bespoke agreement, a comprehensive agreement over the coming years that will really maximise our trade opportunities and boost things for everyone.”
Announcing the deal on twitter, Trudeau tweeted, “This morning, @BorisJohnson and I – along with @Mary_Ng and @TrussLiz – announced the new Canada-UK Trade Continuity Agreement. It’ll preserve the main benefits of CETA, including the elimination of tariffs on 98% of Canadian exports to the UK.”
This morning, @BorisJohnson and I – along with @Mary_Ng and @TrussLiz – announced the new Canada-UK Trade Continuity Agreement. It’ll preserve the main benefits of CETA, including the elimination of tariffs on 98% of Canadian exports to the UK. More here ⤵️ https://t.co/Da8i3cAZ0t
— Justin Trudeau (@JustinTrudeau) November 21, 2020
The Secretary of State for International Trade, U.K. – Liz Truss and Minister of Small Business, Export Promotion and International Trade of Canada – Mary NG were also present during the call. NG said Canada is looking forward to having an ambitious, high level comprehensive trade agreement with the U.K. with similar terms to the E.U. deal.
Terming the deal as a win for Canada, Mary NG tweeted, “A win for Canadians! This morning, I was excited to announce that Canada has successfully concluded negotiations on the new Canada-UK Trade Continuity Agreement, along with @JustinTrudeau, @BorisJohnson, and @trussliz.”
On the other hand, Liz said that Canada and U.K. share a history, a culture and democratic values. More trade between the 2 countries will only strengthen their bonds.
Sharing her thoughts, Liz tweeted, “Today the UK and #Canada have agreed a vital trade continuity agreement. This deal means: White heavy check mark certainty for businesses and industry. White heavy check marks a foundation for a new, advanced trade deal. White heavy check mark and brings us one step closer to joining the Trans-Pacific Partnership.”
This rollover deal means stability and predictability for thousands of jobs and businesses across Canada and U.K. It will also maintain Canada’s high standards for businesses, workers, and the environment while ensuring the continuity and efficiency of the country’s supply-managed products system. However, the Canadian Parliament must approve legislation that would enable the deal to come into effect. U.K. is Canada’s 5th largest trading partner after the United States (U.S.), China, Mexico and Japan.
While chances of Britain striking a post-Brexit trade deal with E.U. looks grim, U.K. is negotiating multiple rollover bilateral deals to ensure smooth trade. In a span of 2 years, U.K. has agreed trade deals with 53 countries, accounting for U.S. $ 217.82 billion of British bilateral trade. The terms of most of the deals are as the E.U. deals. Johnson is trying to shape a new “global Britain” that can negotiate better trade agreements without being a part of the E.U.
