The United Kingdom has agreed a temporary trade agreement with Canada, which will provide an additional buffer for post-Brexit economic transactions in 2021 – as it continues to pursue agreements with the United States and the European Union.
Described by the UK government as a “stopgap”, the agreement announced on Saturday rolled over existing trade agreements between the UK and Canada, opening the door to negotiations in 2021 on a specific trade pact between the UK and Canada.
US-UK TRADE FACTORS POTENTIAL HURDLE FROM BIDEN, BREXIT BATTLE CONGRESS
The government said it provides security for UK companies and locks around $ 27 billion in trade between the countries. The agreement includes zero duty on car exports and duty free trade in goods including beef, seafood. It covers approx. 1
Britain imports products such as salmon and maple syrup from the Commonwealth country, which also recognizes Queen Elizabeth II as head of state.
“This is a fantastic deal for Britain, which secures transatlantic trade with one of our closest allies. “British companies export everything from electric cars to sparkling wine to Canada, and today’s agreement will ensure that trade goes from strength to strength,” said Prime Minister Boris Johnson in a statement.
“Our dealers have worked flat out to secure trade agreements for the UK, and from so early next year we have agreed to start work on a new, tailor-made trade agreement with Canada that will go even further to meet the needs of our economy,” he said. .
It is one of 53 countries with which Britain has signed agreements prior to the end of its departure from the EU by the end of the year – at which point it will no longer be covered by the umbrella of agreements concluded by the Union. The British voted to leave the bloc in 2016 and officially left it in January – leading to a transition period until the end of the year.
It has not yet reached an agreement with the EU, although negotiations are under way. If no agreement is reached, the countries will move to the terms of the World Trade Organization.
The United Kingdom has been working with the United States to knock out a vital trade deal, but that deal may prove less secure than it seemed during a Trump administration. The President was very receptive to the idea of such an agreement given his position on Brexit.
Elected President Joe Biden has warned that there will be no such agreement if Britain is seen undermining the 1998 Good Friday peace deal as part of its own rules governing post-Brexit trade at the Irish-Northern Ireland border.
“We cannot allow the Good Friday agreement that brought peace to Northern Ireland to fall victim to Brexit,” Biden tweeted in September. “Any trade agreement between the United States and the United Kingdom must be conditional on respect for the agreement and prevent the return of a hard border. Period.”
The Associated Press contributed to this report.