- Johnson praised the agreement as a great agreement for Britain, which ensures transatlantic trade between Britain and Canada.
- "Now we get to continue to work on an agreementover the coming years that will really maximize our trade opportunities and boost things for everyone," Trudeau said.
- "Free trade is an important part of the way that we're going to bounce back from COVID, but I also think that Canada and the U.K. share a perspective about building back greener," said Boris Johnson.
The UK has reached a trade agreement with Canada that will extend the terms of the existing agreement between the EU and Canada when the Brexit transition period ends on January 1 next year. British Prime Minister Johnson and Canadian Prime Minister Trudeau reached this agreement in principle via video calls on Saturday.
Johnson praised the agreement as a great agreement for Britain, which ensures transatlantic trade between Britain and Canada.
“Now we get to continue to work on an agreement, a comprehensive agreement, over the coming years that will really maximize our trade opportunities and boost things for everyone,” Trudeau said.
The value of British goods and services exported to Canada each year is approximately 20 billion pounds. The British government hopes that this continuity agreement will lay the foundation for negotiations on a “tailor-made” Anglo-Canada trade agreement next year.
British Minister of International Trade Liz Truss said the agreement will provide “certainty” to thousands of companies.
“It is now vital that Boris Johnson and Liz Truss show the same urgency in securing the other 14 outstanding continuity agreements with countries like Mexico, Ghana, and Singapore, where a total of £60bn of UK trade is still at risk, and time is beginning to run out,” she said.
In addition to Japan and Canada, the United Kingdom has also signed a number of agreements with countries such as Norway, South Korea, and Israel.
Negotiations with a dozen other economies, including Mexico, Vietnam, and Egypt, are still ongoing. In 2019, the total trade relationship between these three countries and the United Kingdom was close to 12 billion pounds in commodities alone.
If an agreement cannot be reached with them by January 1 next year, the terms of trade will be restored to the basic terms of the WTO, imposing higher tariffs on British imports and exports.
A few days after the agreement with Canada was reached, the final critical moment of the negotiations on the UK-EU trade agreement is coming.
The Federation of Small Businesses chairman, Mike Cherry, said: “There was always a danger that the end of the transition period would mean losing wider international market access that we enjoyed as part of EU membership.
“The fact that this new agreement upholds the small business chapter that was previously in place is very welcome. We look forward to such chapters being at the center of all future UK trade deals.”
An aide said that the agreement is “part of a larger strategic move after Brexit, based on deepening trade ties with countries outside of Europe, especially with the dynamic economies of the Americas and the Pacific.”
The Department of International Trade of the United Kingdom said that the rollover agreement is particularly beneficial to the automotive, manufacturing, and food and beverage industries.
For example, the export of British agricultural products will continue to implement zero tariffs, while the British exports to Canada worth about 757 million pounds will not be tariffed.
“Free trade is an important part of the way that we’re going to bounce back from COVID, but I also think that Canada and the U.K. share a perspective about building back greener,” said Boris Johnson.
Josh Hardy, acting director-general of the Confederation of British Industry, said: “Agreement with Canada to ensure trade continuity is good news for businesses on both sides of the Atlantic.”