Canada–United Kingdom Free Trade Agreement Explained

Canada–United Kingdom Free Trade Agreement
Type:Free trade agreement
Context:Trade agreement between Canada and the United Kingdom
Negotiators:
Parties:

The Canada–United Kingdom free trade agreement (CUKFTA) is a proposed free trade agreement which began negotiations on 24 March 2022.[1] The trade agreement will be the third FTA to cover Canada–UK trade, and will supersede the Canada–United Kingdom Trade Continuity Agreement, extending the deal to cover services and digital trade.[2]

History

From 21 September 2017 until 30 December 2020, trade between Canada and the UK was governed by the Comprehensive Economic and Trade Agreement, while the United Kingdom was a member of the European Union.[3] Following the withdrawal of the United Kingdom from the European Union, the UK and Canada signed a continuity trade agreement on 22 December 2020, based on the EU free trade agreement; the agreement entered into force on 1 January 2021.[4] [5] Trade value between Canada and the United Kingdom was worth £26,309 million in 2022.[6]

While a member of the European Union, the Canada and Britain worked together on negotiations towards a Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.[7] The agreement has been ratified by the European Parliament and is provisionally in force since 2017.[8]

The UK left the European Union at the end of January 2020, but continued to participate in the EU's trade agreements during a transition period that ended on 31 December 2020. In November 2020, the UK and Canada signed a continuity agreement in order to apply the terms of the EU-CA agreement to their bilateral trade.[9] In March 2023, the UK concluded negotiations to acceed to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership a trade bloc of which Canada is a founding member.[10]

Negotiations

CUKFTA Round of Negotiations
Round Dates Location Ref.
1 28 March–1 April 2022 [11]
2 20–24 June 2022 [12]
3 12–16 September 2022 Virtual meeting [13]
4 28 November–2 December 2022 [14]
5 20–24 March 2023 [15]
6 26–30 June 2023 [16]
7 5–16 November 2023 Virtual meeting [17]
8 27 November–1 December 2023 Virtual meeting [18]

On 25 January 2024, the United Kingdom suspended negotiations for the free trade agreement due to a standoff between the two sides on the UK maintaining market access barriers for Canada’s agriculture industry.[19] [20] [21] This was the first, and sole, time that the United Kingdom has suspended negotiations for a trade deal since Brexit.[22]

See also

Notes and References

  1. News: Trevelyan. Anne-Marie. 24 March 2022. UK launches negotiations with Canada on a new, modernised trade deal. GOV.UK. 18 December 2023. https://web.archive.org/web/20220324153559/https://www.gov.uk/government/news/uk-launches-negotiations-with-canada-on-a-new-modernised-trade-deal. 24 March 2022. live.
  2. News: Ng. Mary. 28 April 2023. Free-trade deal between Canada and Britain will set a new benchmark. The Times. 18 December 2023. subscription. https://web.archive.org/web/20220428061051/https://www.thetimes.co.uk/article/free-trade-deal-between-canada-and-britain-will-set-a-new-benchmark-bhxbx06b3. 28 April 2022. live.
  3. Web site: EU - Canada. World Trade Organization. 4 May 2024.
  4. Web site: Johnson. Boris. Truss. Liz. UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year . GOV.UK . 22 November 2020. 26 November 2023. https://web.archive.org/web/20201121140105/https://www.gov.uk/government/news/uk-secures-vital-rollover-trade-deal-with-canada-and-agrees-to-start-negotiating-more-advanced-deal-next-year. 21 November 2020. live.
  5. Web site: Cameron-Chileshe. Jasmine. Financial Times. UK and Canada seal rollover trade deal. 21 November 2020. 26 November 2023. https://web.archive.org/web/20201121175120/https://www.ft.com/content/45d3f14f-3f1f-4155-b217-c6145bb88754. 21 November 2020. live.
  6. Web site: UK trade agreements in effect. 9 February 2024. 3 November 2022. GOV.UK. https://web.archive.org/web/20240117122720/https://www.gov.uk/guidance/uk-trade-agreements-in-effect. 17 January 2024.
  7. News: Fox. Liam. 10 December 2018. UK trade with Canada up 14% since new free trade agreement introduced. GOV.UK. 18 December 2023. https://web.archive.org/web/20181210142642/https://www.gov.uk/government/news/uk-trade-with-canada-up-14-since-new-free-trade-agreement-introduced. 10 December 2018. live.
  8. Web site: Commercial and Economic Relations. Government of Canada. 16 March 2015. https://web.archive.org/web/20180428174846/http://www.canadainternational.gc.ca/united_kingdom-royaume_uni/bilateral_relations_bilaterales/commercial-commerciales.aspx?lang=eng. 28 April 2018. dead.
  9. News: UK and Canada to trade on EU terms after Brexit transition . Mattha Busby . 21 November 2020. The Guardian. London. 18 December 2023. https://web.archive.org/web/20201121174404/https://www.theguardian.com/uk-news/2020/nov/21/uk-and-canada-to-trade-on-eu-terms-after-brexit-transition. 21 November 2020. live.
  10. News: 'A significant milestone for UK trade': Britain signs deal to join £12trn Indo-Pacific trading block. 16 July 2023. Sky News. 18 December 2023. https://web.archive.org/web/20230716035131/https://news.sky.com/story/a-significant-milestone-for-uk-trade-britain-signs-deal-to-join-12trn-indo-pacific-trading-block-12921652. 16 July 2023. live.
  11. Web site: Trevelyan. Anne-Marie. 20 December 2022. Canada Trade Negotiations. UK Parliament. 22 April 2024. https://web.archive.org/web/20220808174027/https://hansard.parliament.uk/Commons/2022-04-19/debates/22041916000010/CanadaTradeNegotiations. 8 August 2022. live.
  12. Web site: Trevelyan. Anne-Marie. 19 July 2022. Canada Trade Negotiations: Update. UK Parliament. 22 April 2024. https://web.archive.org/web/20220929115007/https://hansard.parliament.uk/Commons/2022-07-19/debates/22071965000031/CanadaTradeNegotiationsUpdate#contribution-4630AAE9-FE1F-401A-A2E8-0C1979F7A579. 29 September 2022. live.
  13. Web site: Badenoch. Kemi. 23 September 2022. Trade Negotiations with Israel and Canada. UK Parliament. 22 April 2024. https://web.archive.org/web/20240422204928/https://hansard.parliament.uk/Commons/2022-09-23/debates/2209231000009/TradeNegotiationsWithIsraelAndCanada#contribution-52894F57-B8A5-477A-9B04-A01D92B0282C. 22 April 2024. live.
  14. Web site: Badenoch. Kemi. 20 December 2022. Trade Negotiations Update. UK Parliament. 22 April 2024.
  15. Web site: Badenoch. Kemi. 17 April 2023. Canada Trade Negotiations: Update. UK Parliament. 22 April 2024. https://web.archive.org/web/20230718172735/https://hansard.parliament.uk/commons/2023-04-17/debates/23041729000013/CanadaTradeNegotiationsUpdate. 18 July 2023. live.
  16. Web site: Badenoch. Kemi. 20 July 2023. Departmental Update. UK Parliament. 22 April 2024. https://web.archive.org/web/20240422220720/https://hansard.parliament.uk/commons/2023-07-20/debates/23072054000015/DepartmentalUpdate. 22 April 2024. live.
  17. Web site: Huddleston. Nigel. 17 October 2023. UK Trade Negotiations: Switzerland and Canada. UK Parliament. 22 April 2024. https://web.archive.org/web/20240422201041/https://hansard.parliament.uk/commons/2023-10-17/debates/23101738000008/UKTradeNegotiationsSwitzerlandAndCanada. 22 April 2024. live.
  18. Web site: Hands. Gregg. 14 December 2023. Trade Negotiations: Canada and Switzerland. UK Parliament. 22 April 2024. https://web.archive.org/web/20240422200807/https://hansard.parliament.uk/commons/2023-12-14/debates/23121426000030/TradeNegotiationsCanadaAndSwitzerland. 22 April 2024. live.
  19. Goshko. Susannah. SusannahGoshko. 1750599509615231153. 25 January 2024. A statement from the UK Government on our decision to pause Free Trade Negotiations with Canada. 25 January 2024. https://web.archive.org/web/20240125215725/https://twitter.com/SusannahGoshko/status/1750599509615231153. 25 January 2024. live.
  20. News: Tasker. John Paul. McGregor. Janyce. 25 January 2024. U.K. walks away from trade talks with Canada. CBC News. 25 January 2024. https://web.archive.org/web/20240125200311/https://www.cbc.ca/news/politics/canada-uk-trade-cheese-1.7094817. 25 January 2024. live.
  21. News: 25 January 2024. UK Breaks Off Free Trade Talks With Canada on Lack of Progress. Bloomberg. 25 January 2024. subscription. https://web.archive.org/web/20240125204636/https://www.bloomberg.com/news/articles/2024-01-25/uk-breaks-off-free-trade-talks-with-canada-on-lack-of-progress. 25 January 2024. live.
  22. Web site: Foster. Peter. Uddin. Rafe. Campbell. Peter. 26 January 2024. UK halts talks with Canada on post-Brexit trade deal. Financial Times. 26 January 2024. subscription. https://web.archive.org/web/20240126141033/https://www.ft.com/content/edfb3af5-a32a-4800-8494-1913709be295. 26 January 2024. live.

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