Canada–United Kingdom Trade Continuity Agreement Explained

See also: Canada–United Kingdom Free Trade Agreement.

Canada–United Kingdom Trade Continuity Agreement
Long Name:Agreement on Trade Continuity between the United Kingdom of Great Britain and Northern Ireland and Canada
Type:Free trade agreement
Context:Trade continuity agreement between Canada and the United Kingdom
Date Sealed:21 November 2020
Date Signed:8 December 2020
Date Effective:1 January 2021
Negotiators:
Parties:

The Canada–United Kingdom Trade Continuity Agreement (TCA) is a free trade agreement between the United Kingdom and Canada. Discussions had been ongoing between both parties during the Brexit transition period. A deal was finally agreed upon on 21 November 2020, signed on 8 December, and entered into force on 1 January 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.[1] [2]

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 ended on 31 December 2020. Negotiations for the trade agreement began at the beginning of 2020, a deal was finally agreed upon on 21 November 2020. The agreement was signed on 8 December 2020, and entered into force on 1 April 2021. Canadian Prime Minister Justin Trudeau described the deal as an "easy one".[3]

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.[4]

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 was expected to be released once signed by both parties.

Expiration

While the main agreement remains in force, certain chapters have expired:

See also

Notes and References

  1. Web site: September 7, 2020. UK-Canada trade deal back in focus as talks restart. City A.M..
  2. Web site: September 14, 2020. A UK-Canada trade deal is now back on the table. The Telegraph.
  3. Web site: November 11, 2020. 'Easy' UK-Canada trade deal should be secured by end of year: Trudeau. Reuters.
  4. Web site: November 21, 2020. UK secures vital rollover trade deal with Canada and agrees to start negotiating more advanced deal next year. GOV.UK.
  5. Web site: 26 January 2024. UK halts talks with Canada on post-Brexit trade deal. Financial Times. subscription. 26 January 2024. 26 January 2024. https://web.archive.org/web/20240126141033/https://www.ft.com/content/edfb3af5-a32a-4800-8494-1913709be295. live.
  6. Web site: 27 March 2024. UK car exports to Canada face 6% tariffs within days as trade dispute deepens. Financial Times. subscription. 31 March 2024. https://web.archive.org/web/20240328074835/https://www.ft.com/content/51f6afd3-9207-4c30-86f1-354e089d3081. 28 March 2024. live.