THE BUSINESS OF INTERNATIONAL TRADE
Following recent confirmation that the UK and Canada have agreed to rollover existing trading conditions from January 1, 2021, the two countries have now formally signed the agreement, and agree to open discussions for a UK-Canada Free Trade Agreement in 2021.
UK buisnesses currently export goods and services worth £11.4 billion, and the rollover agreement is designed to protect industries including the automotive sector, and food and drink, from additionally tariff burdens of up to £42 million which would have emerged if a continuity agreement hadn't been agreed.
Discussing the agreement, Canada's Minister of Small Business, Export Promotion and International Trade, Mary Ng, said that "This transition agreement preserves the main benefits of the Canada-European Union Comprehensive Economic and Trade Agreement, including the elimination of tariffs on 98% of products exported to the United Kingdom. Canada and the United Kingdom will now move forward with their respective domestic procedures toward the ratification and implementation of the new trade agreement. We also look forward to launching negotiations of a new comprehensive free trade agreement with the United Kingdom in the near future, with a focus on supporting small businesses, women, the environment and digital trade."
Secretary of State for International Trade, Liz Truss, also explained that "The deal also takes us a step closer to joining the Trans-Pacific Partnership, a high standards agreement of 11 dynamic Pacific nations. Membership would deepen market access for our businesses, help turn us into a global hub for tech and services trade, and strengthen the global consensus for rules-based free trade."
For more details on the UK-Canada continuity agreement, go to www.gov.uk/government/news/uk-and-canada-sign-trade-agreement
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