The UK-Canada Trade Agreement: What It Means and What to Expect
On November 23, 2020, the UK and Canada announced a new trade agreement that will take effect on January 1, 2021. This marks the first major trade deal for the UK since leaving the European Union, and is expected to provide a significant boost to both economies.
The agreement covers a wide range of areas, including goods and services, investment, government procurement, and intellectual property. It eliminates tariffs on 98% of goods traded between the two countries, and includes provisions to support small and medium-sized businesses.
One of the key benefits of the agreement is the new opportunities it will provide for UK businesses to trade with Canada. Canada is the UK`s eighth-largest trading partner, and has a strong presence in sectors such as aerospace, automotive, and pharmaceuticals. The agreement is expected to increase UK exports to Canada by up to £1.5 billion ($2 billion) annually.
On the Canadian side, the agreement will provide greater access to the UK market for Canadian businesses, particularly in the areas of agriculture and seafood. It will also help to diversify Canada`s trade relationships, as the country looks to reduce its reliance on the US market.
In addition to the economic benefits, the agreement also includes commitments on labor and environmental standards, as well as provisions to protect intellectual property and support innovation.
Overall, the UK-Canada trade agreement is a positive development for both countries, particularly in the midst of the economic challenges posed by the COVID-19 pandemic. It demonstrates the UK`s ability to negotiate trade deals outside of the EU, and provides a solid foundation for future trade relationships with other countries around the world.
As the agreement comes into effect, businesses in both countries will need to familiarize themselves with the new rules and procedures for trade. This may include changes to supply chains, customs procedures, and regulatory requirements. However, with careful planning and management, the UK and Canada are well positioned to benefit from this new agreement and strengthen their bilateral relationship for years to come.