The UK and Canada announced a trade agreement in November 2020, which will come into effect on January 1, 2021. This agreement is expected to boost trade between the two countries and provide stability for businesses on both sides of the Atlantic.
The deal is based on the existing Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union. It will ensure tariff-free trade on 98% of goods between Canada and the UK, with the exception of some agricultural products.
The agreement covers a wide range of sectors, including digital trade, professional services, and environmental standards. It also includes provisions for small and medium-sized enterprises (SMEs) to facilitate their access to the Canadian market.
The UK government estimates that the agreement will increase trade with Canada by £1.5 billion ($2 billion) and create new opportunities for British businesses. It will also provide British consumers with access to a wider range of Canadian products, such as maple syrup, seafood, and wine.
The UK and Canada are already significant trading partners. In 2019, the UK was Canada`s third-largest source of imports, while Canada was the UK`s 16th largest trading partner. The new trade agreement is expected to strengthen this relationship and provide a basis for future negotiations.
However, the agreement has not been without criticism. Some have raised concerns over the potential impact on the UK`s agricultural industry, as Canadian farmers are known for using growth hormones in their cattle. Others have argued that the agreement does not go far enough in protecting the rights of workers and the environment.
Overall, the UK and Canada trade agreement represents an important step in strengthening the economic relationship between the two countries. As the UK continues to negotiate new trade deals in the post-Brexit era, this agreement provides a blueprint for future partnerships with other countries.