UK-Canada Free Trade Agreement
The UK-Canada Trade Continuity Agreement (TCA) is a free trade agreement between the United Kingdom and Canada. Discussions have been ongoing between both parties during the Brexit transition period, a deal was finally agreed upon on November 21, 2020. The agreement is expected to be signed before 2021. The agreement is mostly a rollover of the CETA agreement but could pave the way to a deeper free trade agreement between Canada and the UK.
History[edit]
As the United Kingdom withdrew from the European Union in January 2020, both the UK and Canada sought to replicate the Comprehensive Economic and Trade Agreement (CETA) to avoid any disruption of trade after the Brexit transition period ends on 31 December 2020. Negotiations for the trade agreement began at the beginning of 2020, as of the 18 November 2020, no agreement was yet reached but could be announced 'within days'.[1] [2] Justin Trudeau described the deal as an 'easy one'. [3].
The UK-Canada Trade Continuity Agreement was agreed by both parties on 21 November 2020 and is expected to be formally signed before the end of 2020. [4]
Trade & Investment[edit]
The benefits locked in under the agreement reached include:
- Future zero tariffs on UK car exports to Canada, which were worth £757 million in 2019, supporting factories and jobs in communities. Without this agreement, Canada’s standard tariffs on cars of 6.1% would have applied.
- Tariff-free trade on 98% of goods that can be exported to Canada including beef, fish and seafood and soft drinks.
- UK and Canadian producers will continue to benefit from zero tariffs on many agricultural and seafood exports including chocolate, confectionery, fruit and vegetables, bread, pastries and fish. Without the continuity agreement, Canadian food products such as maple syrup, biscuits and salmon could have been more expensive for British consumers as they would have faced taxes of up to 8% when entering the UK under the UK Global Tariff. [5]
Overall, the terms of the UK-Canada Trade Continuity Agreement are the same as the Comprehensive Economic and Trade Agreement. The text of the Agreement is expected to be released once it is signed by both parties.
See also[edit]
Sources[edit]
- ↑ (1) Joe (2) Mayes, (1) Kait (2) Bolongaro (November 18, 2020). "U.K., Canada on Brink of Trade Deal in Brexit Boost for Johnson". Bloomberg. Unknown parameter
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References[edit]
- ↑ "UK-Canada trade deal back in focus as talks restart". City A.M. September 7, 2020. Unknown parameter
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