Today`s agreement provides $11.4 billion in security for British companies exporting goods and services to Canada. The trade deal supports UK industries, including the automotive, food and beverage industries, which together create jobs for more than half a million people in the UK. Financial services are likely to be a priority for Britain in the negotiations. The services sector accounts for almost 80% of the UK economy, with financial services employing around one million people. CETA does not cover financial services in detail, but UK officials have suggested that liberalising trade in services will be one of their priorities. Canada and Britain have agreed on a rollover trade deal, countries announced on Saturday and promised to negotiate a broader deal after the expiration of Britain`s transition period after Brexit. Recognizing the need for security during the transition period, Canada agreed that the United Kingdom should remain a party to the Comprehensive Economic and Trade Agreement (CETA) and all other agreements between Canada and the EU during the transition period. These include multilateral agreements between Canada and the EU. However, Canadian companies should consider how new relationships between the UK and the EU could impact them at the end of the transition period, including the outcome of a trade agreement, and take appropriate steps to reduce risk. In the absence of an agreement with the EU, trade preferences between the UK and the EU would disappear and trade between the UK and the EU would be determined by the international obligations of each party. Mary Ng, Minister for Small Business, Export Promotion and International Trade, and Elizabeth Truss, British Secretary of State for International Trade, today announced the successful conclusion of talks on the Canada-UK trade agreement, an interim agreement that will enter into force when Canada and the United Kingdom negotiate a comprehensive free trade agreement. “We want an ambitious high-level trade agreement, a comprehensive agreement with the UK,” said Mary Ng, Minister for Small Business, Export Promotion and International Trade.
She added that officials were in the process of finalising the legal text, which will then be submitted to Parliament for ratification. That is why we call on both sides to return to the negotiating table as soon as possible in order to reach a comprehensive and more ambitious pact, which will eliminate tariffs and non-tariff barriers, establish liberal rules of origin and create a level playing field, allowing for stronger trade and economic growth in both directions of agriculture and agri-food. Canadian Prime Minister Justin Trudeau said last week that the two countries could conclude negotiations for a new trade deal by January 1. In total, an estimated $42 million has been saved for British exports. Among the benefits of today`s agreement, we continue to call on Canadian companies to plan for changes in EU-UK relations or changes to UK internal processes and regulations that could affect Canada-UK trade. The deal would be a major boost for British Prime Minister Boris Johnson in his efforts to set a new course for Britain as a global trading nation outside the EU. An announcement is expected within days, depending on who is familiar with the subject, provided they are not identified. CLOCK What we know about Canada-UK. Interim Trade Agreements: While the legal text of the agreement is still under review and is not yet to be published, the Government of Canada has indicated that the Canada-UK CAW transfers much of CETA`s trade agreements to Canada-UK trade relations, including, but not limited to: