By PCB Customs Brokers, Global Affairs Canada Dec 09, 2020
The Government of Canada has been working hard on a trade agreement between Canada and the United Kingdom that will support good, middle-class jobs in Canada and provide predictability and stability for businesses of all sizes, which is more important than ever during the COVID-19 pandemic.
Today, the Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, introduced Bill C-18, An Act to implement the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA), in the House of Commons.
Subject to parliamentary approval, by preserving the main benefits of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), including the elimination of tariffs on 98% of products exported to the United Kingdom, this agreement will maintain preferential access to the U.K. market for Canadian exporters, even as the United Kingdom exits CETA.
If adopted, the TCA will include:
- continued opportunities for Canadian agriculture, fish, and seafood exporters, as well as commercially meaningful access for all Canadian products
- continued opportunities for Canadian service suppliers, including financial services; the agreement would maintain service-market access to the United Kingdom that is among the best that country has historically granted
- continued guaranteed access for Canadian suppliers to the $188-billion U.K. government procurement market
- continued high CETA standards on labour, the environment, and dispute settlement
The Government of Canada looks forward to working with all members of Parliament and senators to swiftly ratify the TCA to help give Canadian businesses of all sizes, workers, and all other Canadians the stability they need now more than ever.
“Our goal, today and every day, is to support Canadian businesses and workers as they trade, export, and bring their innovative products and services to the world stage. If adopted by Parliament, this agreement will provide certainty for Canadians who rely on fair and stable trade between Canada and the United Kingdom. I look forward to working with all parliamentarians to implement this agreement. We will soon get back to the negotiating table with the United Kingdom on the next chapter in our thriving bilateral trade relationship.”
- Mary Ng, Minister of Small Business, Export Promotion and International Trade
- The United Kingdom left the European Union on January 31, 2020, and will no longer be covered by CETA as of January 1, 2021. CETA continues to govern Canada-EU trade and will be unchanged by the successful conclusion of the TCA, if it is adopted.
- The United Kingdom was Canada’s largest merchandise export market in Europe in 2019 and third largest worldwide and is a key source of foreign direct investment and of science and technology partnerships.
- Two-way merchandise trade with the United Kingdom totalled a value of $29 billion in 2019, making it Canada’s fifth-largest trading partner, after the United States, China, Mexico, and Japan.
- Canada and the United Kingdom have agreed to enter into negotiations for a comprehensive free trade agreement within 1 year of the ratification of the TCA. Canadians would be consulted ahead of new trade agreement negotiations.
- Any future trade agreement between Canada and the United Kingdom would be influenced by the United Kingdom-EU trade relationship, by any unilateral U.K. approaches, and, most importantly, by the interests of all Canadians.
- Canada’s trade team, which includes the Canadian Trade Commissioner Service, Export Development Canada, and the Business Development Bank of Canada, continues to provide funding and support services to Canadian companies doing business in the United Kingdom and in the European Union.
Statement By Minister Ng On Signing Of Canada-United Kingdom Trade Continuity Agreement
The Honourable Mary Ng, Minister of Small Business, Export Promotion and International Trade, today issued the following statement regarding the signing of the Canada-United Kingdom Trade Continuity Agreement:
“Canada welcomes the signing of the new Canada-United Kingdom Trade Continuity Agreement, which will support good, middle-class jobs in Canada and provide stability for businesses of all sizes.
“At a time of great uncertainty amid COVID-19, this continuity and predictability is crucial for all Canadians.
“This transition agreement preserves the main benefits of the Canada-European Union Comprehensive Economic and Trade Agreement, including the elimination of tariffs on 98% of products exported to the United Kingdom.
“Canada and the United Kingdom will now move forward with their respective domestic procedures toward the ratification and implementation of the new trade agreement.
“Our government looks forward to introducing and debating legislation in the House of Commons as soon as possible so that we can deliver the continuity Canadians need.
“We also look forward to launching negotiations of a new comprehensive free trade agreement with the United Kingdom in the near future, with a focus on supporting small businesses, women, the environment and digital trade.”