UK and Canada agree post-Brexit trade can continue under same terms as EU deal

21 November 2020, 14:12

File photo: Prime Minister Boris Johnson meets Canadian Prime Minister Justin Trudeau at the G7 summit
File photo: Prime Minister Boris Johnson meets Canadian Prime Minister Justin Trudeau at the G7 summit. Picture: PA

By Megan White

The UK and Canada have agreed a deal to continue trading under the same terms as the current European Union agreement after the Brexit transition period ends, in a relief for businesses fearing high tariffs.

The Government said the agreement paves the way for negotiations to begin next year for a new comprehensive deal with Canada, which has been touted as one of the benefits of the UK leaving the bloc.

Prime Minister Boris Johnson and Canadian counterpart Justin Trudeau sealed the "agreement in principle" in a video call on Saturday, the Department for International Trade (DIT) said.

The agreement rolls over the settlement agreed by the EU with Canada in the Comprehensive Economic and Trade Agreement (Ceta) and does not give any new benefits to UK businesses.

But the DIT said it avoids an estimated £42 million of tariffs exporters in the UK would have faced if the Government had failed to get a deal.

George Eustice gives update on Brexit negotiations

Ministers hope future negotiations will go further on "digital trade, women's economic empowerment and the environment", according to DIT.

Industry groups expressed relief that businesses will not face higher trade tariffs with Canada next month.

Federation of Small Businesses chairman Mike Cherry said: "There was always a danger that the end of the transition period would mean losing wider international market access that we enjoyed as part of EU membership.

"The fact that this new agreement upholds the small business chapter that was previously in place is very welcome. We look forward to such chapters being at the centre of all future UK trade deals."

Confederation of British Industry director-general Josh Hardie said it was "great news for businesses" and that the agreement can "lay the foundations for an even deeper trade agreement".

International Trade Secretary Liz Truss said: "Today's agreement underpins £20 billion worth of trade and locks in certainty for 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."

Before it is formally signed, the UK-Canada Trade Continuity Agreement will be subject to final legal checks.

More Latest News

See more More Latest News

Renée Zellweger

Mad about the Box Office: Latest Bridget Jones installment smashes rom com record

Exclusive
David Gauke wants to reduce the size of the female prison estate to make room for more male inmates. File image shows Pentonville prison

Send fewer women to jail to make room for male inmates, says former Justice Secretary

x

Starmer will ensure UK is 'leading country' in European countries stepping up support for Ukraine

Gunner Beck

Women in Army subjected to 'disgusting' comments from male colleagues amid misogynistic culture, inquest hears

The aircraft can be seen upside down, with its wheels in the air, and the area thick with snow

Passenger jet 'flips over' during landing in Toronto leaving 15 injured - with three critical

Paula Miluska had started working from home in November 2022 due to her pregnancy illness

Woman awarded £93k payout after boss fires her for morning sickness by sending jazz hands emoji

c

Britain must take a ‘leading responsibility’ for peace in Ukraine, says PM as he calls for US ‘security guarantee’

Andrew Tate is facing allegations of trafficking of minors, sexual intercourse with a minor and money laundering

Trump team 'pressuring Romania to lift restrictions on Andrew Tate'

Skyrora, a rocket company with its headquarters in Edinburgh

Scottish company promises to blast rockets into space from 2026

A petition calling for major driving licence changes has received almost 100,000 signatures

Petition calls for ban on newly-qualified drivers carrying passengers under 25

The Princess of Wales has shares portraits drawn by her three children during the half-term break.

Princess of Wales shares heartwarming portraits drawn by George, Charlotte and Louis - but who drew who?

Double Olympic champion and Tour de France winner Geraint Thomas will retire from cycling this year.

Tour de France winner and double Olympic champion Geraint Thomas to retire from cycling at end of season

A 13-year-old boy has died and five others have been arrested following  a car crash on A672 Oldham Road.

Boy, 13, dies and five others arrested as Vauxhall Corsa spins off road in horror car crash

Lisa Smith, 43, was named by Kent Police

Pictured: Mother-of-two shot dead at pub on Valentine's Day - as police search river Thames for partner

Julia Wandelt who has claimed to be Madeleine McCann

Woman who claims to be Madeleine McCann releases bombshell new DNA test results

Pope Francis will need to remain in hospital with a respiratory tract infection

Pope to remain in hospital with infection as doctors tackle 'complex clinical picture'