Canada and UK Aim for April 1 as Trade Continuity Agreement Implementation Date
Canada and the United Kingdom will look to ratify their Trade Continuity Agreement by April 1, Canadian International Trade Minister Mary Ng announced in a March 19 press release. Having established a Memorandum of Understanding in December to continue preferential tariff rates through the Brexit process, Canada and the U.K. have decided to ratify the short-term agreement and move on to future negotiations on a more ambitious free trade agreement. The TCA gives Canadian exporters continued preferential access to the U.K. market with 98% of Canadian products receiving tariff-free admission to the Kingdom. According to the corresponding press release from Britain's International Trade Secretary Liz Truss, the agreement ensures the elimination of tariffs on beef, fish, chocolate bars and soft drinks and the eventual zero tariffs on cars. The agreement will save an estimated 42 million GB pounds on tariffs, the release said.
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“Later this year, we will take our trading relationship to new heights by starting negotiations on a new trade deal that will help us set the bar for 21st Century trade, bringing jobs opportunity, and prosperity for our people,” Truss said in a statement. Added Ng: “Canada and the United Kingdom share a unique, and historic relationship. As we continue to address the [COVID-19] pandemic, and look ahead, international trade will be essential to ensuring a strong, inclusive recovery that generates growth and creates good jobs and prosperity for Canadians.”