That is why we call on both sides to return to the negotiating table as soon as possible in order to reach a comprehensive and more ambitious pact, which will eliminate tariffs and non-tariff barriers, establish liberal rules of origin and create a level playing field, allowing for stronger trade and economic growth in both directions of agriculture and agri-food. “I know that it is important for the British government to reverse and demonstrate free trade agreements. Canada is really simple. That`s why we`re here. We`d like to do that, so I hope it will be done, but it`s the British government,” Trudeau said last week at an online event hosted by the Financial Times. Goods traded between the United Kingdom and the European Union would be subject to the requirements that were normally, which were customary for products from third countries, as well as pre-compliance checks, such as duties. B customs duties, VAT, sanitary and plant health measures. This is trade under WTO rules and can lead to delays at UK ports of entry. The Canada-U.K. Trade Continuation Agreement extends tariff removal to 98% of goods exported between the two countries and creates the conditions for a more ambitious and sustainable agreement for the new year. The agreement could “include the potential to go further in areas such as digital trade, the environment and women`s economic empowerment,” says a UK government statement. In the absence of an agreement with the EU, trade preferences between the UK and the EU would disappear and trade between the UK and the EU would be determined by the international obligations of each party. The UK`s withdrawal (“Brexit”) is governed by a negotiated withdrawal agreement between the UK and the EU, which provides for the UK to be in a transitional period with the EU until 31 December 2020.
During the 11-month transitional period, the UK is largely treated as an EU member state, as it can benefit from EU trade agreements with third countries such as Canada. As a result, trade between Canada and the United Kingdom is subject to CETA until December 31, 2020. For more information on the other immediate trade effects of Brexit and what the transition period means for Canada, click here in our newsletter. Supply Lines is a daily newsletter that tracks the impact of COVID-19 on trade. Sign in here and sign up for our covid-19 podcast for the latest pandemic news and analysis. Canadian companies should carefully review their supply chains and investment strategies with the United Kingdom and determine the impact of the ACA between Canada and the United Kingdom on their efforts.