LONDON (Pakistan Point News / Sputnik - 10th December, 2020) The UK and Canada signed an agreement on Wednesday that will allow both countries to continue trading under the European Union terms until both sides negotiate a custom-made post-Brexit free trade deal next year, the UK government announced.
"The UK and Canada have today signed a trade agreement in Canada. Today's agreement secures transatlantic trade with a trading partnership worth �20 billion [$26.7 billion] last year. Both countries to negotiate a new, tailor-made UK-Canada trade deal in 2021," the department said in a press release.
The agreement was signed by UK Deputy High Commissioner for Canada David Reed and Canadian Deputy Minister for International Trade John Hannaford. The signing comes after the two countries agreed in November to keep existing trading arrangements and start negotiations on a more advanced trade deal.
"Today's agreement gives certainty for UK businesses exporting goods and services to Canada worth �11.4 billion. The trade deal supports British industries including automotive manufacturing and food and drink, which between them provide jobs for more than half a million people across the UK. Overall, an estimated �42 million tariff burden on UK exports has been saved," the department added.
The deal also envisions zero tariffs on 98 percent of the UK exports to Canada, including cars, agricultural products, beef, fish, seafood and soft drinks. 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 face taxes of up to 8% when entering the UK, the statement added.
The agreement is expected to enter into force on January 1 after the UK formally leaves the European Union.
The UK has already signed trade deals with a number of non-EU countries that are expected to go into effect after Brexit, when the bloc's trade deals will no longer apply to London. The UK had inked agreements with Switzerland, Egypt, Israel, Jordan, South Korea, Ukraine, Georgia, Norway, South Africa, Kenya and Chile, among others.
