The United Kingdom and Canada have reached an agreement that guarantees the continuation of the current trade flows between the two countries on the same conditions after Brexit. This has been announced by the British Trade Secretary Liz Truss.
British Prime Minister Boris Johnson, his Canadian counterpart Justin Trudeau and the trade ministers of both countries, Liz Truss and Mary Ng, agreed on the principles of a treaty that would ensure continuity of trade between Britain during a video meeting on Saturday. and Canada guarantees once the British will definitely leave the European customs union and the internal market on January 1.
The deal includes trade flows worth £ 20 billion, equivalent to £ 22.4 billion, and guarantees the employment of thousands of workers, Truss assures.
In principle, this is nothing more than the continuation of the trade conditions included in the trade agreement between the EU and Canada (CETA). So nothing will change for British companies, but the agreement will prevent customs tariffs from being suddenly levied on trade flows between Canada and the United Kingdom from 1 January. In the course of next year, Canada and the United Kingdom will start negotiations on a more ambitious free trade agreement with closer cooperation in a variety of areas, according to Truss.
In the meantime, the EU and Great Britain are still negotiating a trade agreement that should take effect from 1 January. Those negotiations are very difficult. A trade agreement is needed to avoid a hard crash of the British from the European Union. If that fails, tariffs and other barriers to trade flows across the Channel will apply from 1 January.
Free unlimited access to Showbytes? Which can!
Log in or create an account and don’t miss out on the stars.