On November 21, 2020, Global Affairs Canada announced the successful conclusion of talks for the Canada-United Kingdom Trade Continuity Agreement (Canada-UK TCA) – an interim deal that will be in place as Canada and the United Kingdom work towards negotiating a comprehensive free trade agreement. The new agreement will provide continued access to the benefits of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the United Kingdom. This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the United Kingdom market, even as the country exits the EU.
After the UK transition period ends, the terms of trade between Canada and the UK will be governed by the Canada-UK TCA. Once in force, the Canada-UK TCA will ensure that Canadian firms will see little to no change in the terms by which they trade with the UK after January 1, 2021. The Canada-UK TCA will reflect the terms and conditions of CETA.
However, there could be changes in the EU-UK relationship or changes to UK domestic processes and regulations that may affect the ease of trade between Canada and the UK. The Government of Canada will continue to monitor how Canada’s trade with the UK might be affected in the short to medium term.
When the transition period ends on December 31, 2020, the UK will no longer be bound by EU treaties with third countries, including CETA.