A rollover trade deal has been agreed to between the United Kingdom and Canada on Saturday which will be instrumental to protect the mutual trade worth $27 billion (£20.32 billion) from additional tariffs after Brexit. The two countries also agreed to begin negotiations on a bespoke agreement next year.
In order to maintain free flow of goods, multiple rollover bilateral deals have been struck by the UK as the country gets ready to end its transition out of the European Union on December 31. Many of the trade deals have simply replaced the terms the bloc had already agreed.
The marking of the deal was made in the presence of British Prime Minister Boris Johnson and Canada’s Justin Trudeau along with their respective trade ministers on an online call. This trade agreement also sets the platform for the two countries to get together a tailor-made deal that would cover more areas such as digital trade, small businesses, the environment and women’s economic empowerment.
“Today’s agreement underpins 20 billion pounds worth of trade and locks in certainty for thousands of jobs,” Liz Truss, the UK’s international trade secretary, said in a statement.
The transitional agreement “largely replicates” the EU deal on tariff reductions and provisions for labour and environment, said her Canadian counterpart Mary Ng. “We do want an ambitious, high level comprehensive trade agreement with the UK,” Ng said, signalling Canada wanted similar terms to the EU deal.
In order for the deal to come into effect, it now needs to be ratified by the Canadian Parliament.
After the United States, China, Mexico and Japan, the UK is Canada’s fifth largest trading partner.
According to analysts, the efforts of Johnson are aimed at shaping a new “global Britain” which has the capability to strike out trade deals alone and negotiate better trade agreements compared to the EU which is part of the benefits of the historic decision of the UK to exit the biggest trading bloc of the world, according to Johnson.
Trade deals with 53 countries have been struck by the UK in less than two years which is equivalent to bilateral trade worth 164 billion pounds ($217.82 billion). But critics of the British prime minister have alleged that the many of the trade agreements are almost the same as the trade deals between the EU and the respective countries.
Before the UK-Canada Trade Continuity Agreement is formally signed, final legal checks of the deal will be needed to be carried out.
“This is a good moment,” Trudeau said.
(Source:www.aljazeera.com)
In order to maintain free flow of goods, multiple rollover bilateral deals have been struck by the UK as the country gets ready to end its transition out of the European Union on December 31. Many of the trade deals have simply replaced the terms the bloc had already agreed.
The marking of the deal was made in the presence of British Prime Minister Boris Johnson and Canada’s Justin Trudeau along with their respective trade ministers on an online call. This trade agreement also sets the platform for the two countries to get together a tailor-made deal that would cover more areas such as digital trade, small businesses, the environment and women’s economic empowerment.
“Today’s agreement underpins 20 billion pounds worth of trade and locks in certainty for thousands of jobs,” Liz Truss, the UK’s international trade secretary, said in a statement.
The transitional agreement “largely replicates” the EU deal on tariff reductions and provisions for labour and environment, said her Canadian counterpart Mary Ng. “We do want an ambitious, high level comprehensive trade agreement with the UK,” Ng said, signalling Canada wanted similar terms to the EU deal.
In order for the deal to come into effect, it now needs to be ratified by the Canadian Parliament.
After the United States, China, Mexico and Japan, the UK is Canada’s fifth largest trading partner.
According to analysts, the efforts of Johnson are aimed at shaping a new “global Britain” which has the capability to strike out trade deals alone and negotiate better trade agreements compared to the EU which is part of the benefits of the historic decision of the UK to exit the biggest trading bloc of the world, according to Johnson.
Trade deals with 53 countries have been struck by the UK in less than two years which is equivalent to bilateral trade worth 164 billion pounds ($217.82 billion). But critics of the British prime minister have alleged that the many of the trade agreements are almost the same as the trade deals between the EU and the respective countries.
Before the UK-Canada Trade Continuity Agreement is formally signed, final legal checks of the deal will be needed to be carried out.
“This is a good moment,” Trudeau said.
(Source:www.aljazeera.com)
