November 23, 2020

Canada and Britain Agree On Post-Brexit Rollover Trade Agreement

Britain and Canada have struck a rollover trade deal to protect the flow of $27 billion-worth of goods and services between them after Brexit, and vowed to start talks on a custom agreement next year.

As Britain prepares to end its transition out of the European Union on Dec. 31, it has negotiated multiple rollover bilateral deals to maintain trade, with many simply replacing the terms the bloc had already agreed.

British Prime Minister Boris Johnson joined Canada’s Justin Trudeau and their respective trade ministers on an online call to mark the deal, which paves the way for a tailor-made agreement covering more areas such as digital trade, small businesses, the environment and women’s economic empowerment.

The Canada-United Kingdom Trade Continuity Agreement (CUKTCA), would preserve the main benefits of the Comprehensive Economic and Trade Agreement (CETA) and allow for a continuation of trade and market access between Canada and the UK.

The Canadian Parliament must approve legislation that would enable the deal to come into effect.

Britain is Canada’s fifth largest trading partner after the United States, China, Mexico, and Japan.

In less than two years, Britain has agreed to trade deals with 53 countries, accounting for 164 billion pounds ($217.82 billion) of British bilateral trade.

The UK-Canada Trade Continuity Agreement will be subject to final legal checks before it is formally signed.

(Source: Reuters)