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

GPs will be told to stop giving sick notes to sign people off work.

GPs told to stop handing out sick notes and start sending people to job coaches and gyms

A TUI plane destined for Gatwick was diverted to an airport in Maine, US.

Brits stranded in 'war zone' conditions for 12 hours as TUI plane diverts mid-flight due to 'smoking'

The charred remains of Grenfell Tower, Notting Hill, London, Britain. The 24 storey residential Tower block was engulfed in flames in the summer of 2017.

Grenfell families accuse government of ‘shameless betrayal’ over pause on investigation into 'implicated' firms

John Lacey, 42, was sentenced to 14-months imprisonment.

Thug, 42, jailed for punching pregnant girlfriend in stomach in attack that 'changed victim forever'

Morgan Gibbs-White is set to join Tottenham

Nottingham Forest star Morgan Gibbs-White set to join Tottenham in £60m transfer

Empty shop with To Let sign in central West London.

London store closures hit 10-year high - as government urged to invest £5bn to save UK's high-streets

Liverpool Women v Aston Villa Women - Pre Season Friendly

Arsenal close to record-breaking £1m signing of Liverpool’s Olivia Smith in landmark deal

Blue Stevens was stabbed to death in Knightsbridge after 'standing up to someone who was trying to steal his watch'

'I can't stop crying': Heartbroken mum of man stabbed to death outside five-star hotel 'for his Rolex' pays tribute

'Birkin' bag by Hermes which belonged to British-French actress and singer Jane Birkin

Original Hermes Birkin bag which belonged to actress Jane Birkin sells for £8.6 million

Parts of an Air India plane that crashed on Thursday are seen on top of a building in Ahmedabad, India, Friday, June 13, 2025.

Investigators look into Air India's vital engine switches after plane crash killed 270 people

Sean O'Meara

Four suspicious devices found where police shot chainsaw-wielding man in gas mask

Distressing footage Body worn footage shows PC Lydia Ward being comforted by colleagues as she is bleeding from the nose after she tried to arrest an assault suspect at Manchester Airport.

Shocking clip shows cop with bloodied nose crying after Manchester Airport brawl as bodycam footage shown to jury

A neurosurgeon pointing towards a computer as they analyse a patient MRI Scan at a brain surgery clinic.

Air pollution exposure increases risk of common brain tumour, study suggests

Frank Barrie

EastEnders star and theatre legend Frank Barrie dead at 88 - as family pays tribute

PC Luke Holden PCSO Tim Parry Sgt Greg Gillespie

'I saw the look in his eyes': Hero officers open up about moment they came face-to-face with Southport killer

Exclusive
Screen grab of Leader of the House of Commons, Lucy Powell, speaking in the chamber during the debate on draft legislation giving the Government 'the power to direct steel companies in England' to protect British Steel's Scunthorpe plant.

Commons leader 'vows to fix broken system' after LBC investigation 'shines light' on SEN parents' cease & desist letters