The signing comes after both countries last month announced an ‘agreement in principle’ to roll over current trading arrangements.
The UK’s Deputy High Commissioner for Canada David Reed, and Canadian Deputy Minister of International Trade John Hannaford have today (Wednesday 9 December) 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 £11.4 billion. 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.
Overall, an estimated £42 million tariff burden on UK exports has been saved. The benefits locked in under the agreement signed today include:
- Future zero tariffs on UK car exports to Canada, which were worth £757 million last year, supporting factories and jobs in our communities. Without this agreement, Canada’s standard tariffs on cars of 6.1% would apply.
- 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.
- Without the continuity agreement, Canadian food products such as maple syrup, biscuits and salmon could have been more expensive for British consumers as they would face taxes of up to 8% when entering the UK under the UK Global Tariff.
International Trade Secretary Liz Truss said:
All nations and regions will benefit from preferential access to Canadian markets. For example, together the West Midlands and North West regions exported over £1.2 billion worth of goods to Canada last year, while Scotland and Northern Ireland collectively exported £1 billion.
In under two years, the UK government has agreed trade deals with 55 countries accounting for £170 billion of UK bilateral trade.