Canada–United Kingdom Trade Continuity Agreement
Free trade agreement between the UK and Canada, largely replicating CETA.
The Canada–United Kingdom Trade Continuity Agreement is a free trade pact between the two nations. Talks took place during the Brexit transition period, with a deal reached on 21 November 2020. It was signed on 8 December and took effect on 1 April 2021. Largely carrying over the CETA agreement, it set the stage for a more comprehensive future trade deal.
Quick Facts
- Long name
- Agreement on Trade Continuity between the United Kingdom of Great Britain and Northern Ireland and Canada
- Context
- Trade continuity agreement between Canada and the United Kingdom
- Date sealed
- 21 November 2020
- Date signed
- 8 December 2020
- Date effective
- 1 April 2021
- Languages
- English, French
Facts from the source article.
History
When the UK left the EU in January 2020, both it and Canada wanted to keep the same trade terms from the Comprehensive Economic and Trade Agreement to prevent problems after the Brexit transition ended on 31 December 2020. Talks started in early 2020, and a deal was reached on 21 November 2020. It was signed on 8 December 2020 and took effect on 1 April 2021. Canadian Prime Minister Justin Trudeau called it an "easy one".
Trade & Investment
The agreement locks in future zero tariffs on UK car exports to Canada, which were worth £757 million in 2019; without the agreement, Canada's standard 6.1% tariff on cars would have applied. Tariff-free trade applies to 98% of goods that can be exported to Canada, including beef, fish, seafood, and soft drinks. UK and Canadian producers continue to benefit from zero tariffs on many agricultural and seafood exports such as chocolate, confectionery, fruit, vegetables, bread, pastries, and fish. Without the continuity agreement, Canadian food products like maple syrup, biscuits, and salmon could have faced taxes of up to 8% under the UK Global Tariff. The terms are the same as the Comprehensive Economic and Trade Agreement. Certain chapters have expired: the preferential access deal for British cheesemakers into Canadian markets ended on 31 December 2023, and from 1 April 2024, British car exports to Canada face a 6.1% tariff if they contain significant EU components, while British-origin cars require 55% UK components, increased from 50%.
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