Uk Canada Free Trade Agreement

UK Canada Free Trade Agreement: What You Need to Know

The UK and Canada recently reached a historic agreement to continue trading under the same terms as they currently do under the EU-Canada Comprehensive Economic and Trade Agreement (CETA). This means that the two countries will be able to maintain tariff-free trade in goods and services, as well as investment flows.

What Does the Agreement Cover?

The agreement covers a wide range of areas, including:

– Goods: Tariff elimination on 98% of current UK exports to Canada, including beef, fish, and seafood. It also includes the phasing out of tariffs on cars, spirits, and textiles.

– Services: The agreement ensures continued market access for UK service suppliers, including legal, financial, and professional services.

– Investment: The agreement includes provisions for the protection of UK and Canadian investments, making it easier for companies to do business across borders.

– Government Procurement: The agreement allows UK companies to bid in Canadian government procurement contracts and vice versa, creating new opportunities for businesses.

– Intellectual Property: The agreement includes provisions for the protection of trademarks, patents, and copyrights.

What Are the Benefits?

The UK-Canada Free Trade Agreement is expected to provide a boost to both countries’ economies, with estimates suggesting that it could increase trade between the two countries by £20 billion (approximately $27 billion) over the long term.

For the UK, the agreement provides a significant opportunity to expand its trade with Canada, which is already one of its largest trading partners outside of the EU. It also helps to diversify the UK’s trading relationships, which has become increasingly important following the UK’s departure from the EU.

For Canada, the agreement represents an opportunity to further cement its economic ties with the UK, while also providing access to a market of 66 million people.

What Are the Next Steps?

The UK-Canada Free Trade Agreement is expected to come into effect on January 1, 2021, subject to parliamentary ratification in both countries. In the meantime, negotiations will continue on some outstanding issues, including the mutual recognition of professional qualifications and the liberalization of rules for labour mobility.

Conclusion

The UK-Canada Free Trade Agreement represents an important step forward in the economic relationship between these two countries. By maintaining the current trade arrangements under CETA, the agreement provides continuity and stability for businesses and consumers alike. It is also expected to provide a significant boost to trade and investment between the UK and Canada, which can only be a good thing for both countries’ economies.