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Summary
- The UK and Canada have agreed to sign a deal that enables the trade to continue under the same conditions as the current EU agreement
- The UK has agreed to a trade agreement with over 50 other countries worth more than £150 billion
- The UK aims to be a part of the Trans-Pacific Partnership which comprises 11 countries, including Australia, Canada and Japan
The UK and the Canadian government have agreed to continue their bilateral trading on the same terms as that of the current European Union (EU) after the Brexit transition period gets over on 31 December.
The deal in principle was agreed upon by British Prime Minister Boris Johnson and the head of the Canadian government Justin Trudeau on a video teleconference, the Department for International Trade (DIT) said.
The UK government said the deal would help the negotiations which are to begin next year on a new inclusive agreement with Canada. Johnson said the new deal with Canada would not be restricted to meeting the economic needs, but also it will boost the ties between the two nations.
It will move over the trade and comprehensive economic agreement achieved by the EU and Canada after seven years of talks. Furthermore, the UK-Canada Trade Continuity Agreement will be signed formally after all the necessary legal checks are done.
It is believed that the deal with Canada has come at the right time as this would prevent the disruption of goods and services which are worth £20 billion. Industry groups have also expressed relief as the UK won’t be facing any higher trade tariffs with Canada from next month. But others warned that similar trade treaties are required to avoid “a damaging cliff edge for both importers and exporters”.
And, now Britain has agreed to a trade agreement with over 50 other countries worth more than £150 billion.
Commenting on the deal, International Trade Secretary Liz Truss, said the latest trade deal would also include negotiation on areas such as women’s economic empowerment, environment and digital trade.
In the near future, Britain aims to be a part of the Trans-Pacific Partnership which comprises 11 countries, including Australia, Canada and Japan. This would enable the UK to have access to a huge market that is equivalent to 13 per cent of global GDP – worth around £11 trillion, Truss added.
In fact, the Labour party leaders have also urged the British government to secure the trade continuity deals with other major allies before the end of the year.
Also read: How Will Post-Brexit Canada-UK Deal Impact Canadian Businesses?
Meanwhile, Trudeau said the latest deal with the UK would take a couple of years to negotiate in terms of being more comprehensive, and it will enhance the business prospects and prove beneficial for everyone.
Mike Cherry, the chairman at Federation of Small Businesses, said the businesses were also concerned about the prospects of a trade after the end of the transition period. He said that UK businesses might lose a wider market which it could access under the European Union bloc.
However, the new agreement will help the small businesses to continue to have a smooth ride in terms of trade, Cherry added.
