UK and Canada sign trade agreement for 2021 and beyond
The UK’s Deputy High Commissioner for Canada David Reed, and Canadian Deputy Minister of International Trade John Hannaford have signed the UK-Canada Trade Continuity Agreement in Ottawa.
The signing comes after both countries last month announced an ‘agreement in principle’ to roll over current trading arrangements and begin negotiations on a new, bespoke UK-Canada trade deal in 2021.
Today’s agreement gives certainty for UK businesses exporting goods and services to Canada worth £11.4bn. The trade deal supports British industries including automotive manufacturing and food and drink, which between them provide jobs for more than half a million people across the UK.
The benefits locked in under the agreement signed today include future zero tariffs on UK car exports to Canada, which were worth £757m last year, supporting factories and jobs in our communities. Without this agreement, Canada’s standard tariffs on cars of 6.1% would apply.
There is also tariff-free trade on 98% of goods that can be exported to Canada including beef, fish and seafood and soft drinks.
UK producers will continue to benefit from zero tariffs on many agricultural and seafood exports including chocolate, confectionary, fruit and vegetables, bread, pastries and fish. Last year the UK exported £344m worth of agri-food goods to Canada.
International Trade Secretary Liz Truss said: “This is a brilliant deal for Global Britain. It secures £20bn worth of trade with a friend and ally that shares our commitment to free enterprise, democracy and free trade. It provides certainty for car and food and drink exporters in particular, and paves the way for a more advanced deal that goes further and faster in modern areas like digital and data, women’s economic empowerment and the environment.
“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.”