UK–Canada Trade Continuity Agreement

The UK-Canada Trade Continuity Agreement (TCA) is a free trade agreement between the United Kingdom and Canada. Discussions have been ongoing between both parties during the Brexit transition period, a deal was finally agreed upon on November 21, 2020. The agreement was signed on December 8, 2020, and entered into force on 1 April 2021. The agreement is mostly a rollover of the CETA agreement but could pave the way to a deeper free trade agreement between Canada and the UK.

UK - Canada Trade Continuity Agreement (TCA)
United Kingdom - Canada Trade Continuity Agreement (TCA)
  United Kingdom (UK)
  Canada
TypeTrade Agreement
ContextUK's trade relationship with Canada
Sealed21 November 2020
Effective01 January 2021
Negotiators
Parties

History

As the United Kingdom withdrew from the European Union in January 2020, both the UK and Canada sought to replicate the Comprehensive Economic and Trade Agreement (CETA) to avoid any disruption of trade after the Brexit transition period ends on 31 December 2020. Negotiations for the trade agreement began at the beginning of 2020, as of the 18 November 2020, no agreement was yet reached but could be announced 'within days'.[1] [2] Justin Trudeau described the deal as an 'easy one'.[3]

The UK-Canada Trade Continuity Agreement was agreed by both parties on 21 November 2020 and is expected to be formally signed before the end of 2020.[4]

Trade & Investment

The benefits locked in under the agreement reached include:

- Future zero tariffs on UK car exports to Canada, which were worth £757 million in 2019, supporting factories and jobs in communities. Without this agreement, Canada's standard tariffs on cars of 6.1% would have applied.

- Tariff-free trade on 98% of goods that can be exported to Canada including beef, fish and seafood and soft drinks. 

- UK and Canadian producers will continue to benefit from zero tariffs on many agricultural and seafood exports including chocolate, confectionery, fruit and vegetables, bread, pastries and fish. 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 have faced taxes of up to 8% when entering the UK under the UK Global Tariff.[5]

Overall, the terms of the UK-Canada Trade Continuity Agreement are the same as the Comprehensive Economic and Trade Agreement. The text of the Agreement is expected to be released once it is signed by both parties.

See also

References
  1. (1) Joe (2) Mayes, (1) Kait (2) Bolongaro (November 18, 2020). "U.K., Canada on Brink of Trade Deal in Brexit Boost for Johnson". Bloomberg.{{cite web}}: CS1 maint: url-status (link)
  2. "UK, Canada could announce free trade deal within days". Al Jazeera. November 19, 2020.{{cite web}}: CS1 maint: url-status (link)
  3. "'Easy' UK-Canada trade deal should be secured by end of year: Trudeau". Reuters. November 11, 2020.{{cite web}}: CS1 maint: url-status (link)
  4. "UK and Canada seal rollover trade deal". Financial Times. November 21, 2020.{{cite web}}: CS1 maint: url-status (link)
  5. "UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year". UK Gov. November 21, 2020.{{cite web}}: CS1 maint: url-status (link)
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