THE BUSINESS OF INTERNATIONAL TRADE
The UK and Canada have agreed a rollover agreement, which will allow trade between the two continues to continue on existing trading terms after the expiry of the UK-EU transition agreement.
The current trading relationship between the UK and Canada is based on Canada's trade agreement with the European Union, the Comprehensive Economic and Trade Agreement (CETA). However, when the UK's transition arrangement with the EU concludes on December 31, 2020, EU trade agreements including CETA will cease to apply to the United Kingdom.
The deal to continue the current trading terms between the UK and Canada was signed on Saturday November 21 during a video conference call between UK Prime Minister Boris Johnson, UK Secretary of State for Trade Liz Truss, Canadian Prime Minister Justin Trudeau, and the Canadian Minister of Small Business, Export Promotion and International Trade, Mary Ng.
The agreement allows existing regulations to rollover, whilst also establishing the foundations for talks in 2021 to create a new, bespoke trading agreement between the UK and Canada.
Discussing the agreement, British PM Boris Johnson said that "This is a fantastic agreement for Britain which secures transatlantic trade with one of our closest allies. 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." Liz Truss added that "Today’s agreement underpins £20 billion worth of trade and locks in certainty for the thousands of jobs. We look forward to striking a new more ambitious deal next year with the aim of creating more opportunities for businesses and improving the lives of people across the country."
For more information on the rollover agreement, see www.gov.uk/government/news/uk-secures-vital-rollover-trade-deal-with-canada-and-agrees-to-start-negotiating-more-advanced-deal-next-year
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