Canada and the United Kingdom (U.K.) struck a transitional trade deal on Saturday, November 21, 2020, to protect the flow of goods, once Brexit takes place January 1, 2021, when the U.K. is no longer part of the European Union benefiting from the Canada-European Union Comprehensive Economic and Trade Agreement (CETA).
The new deal,
Canada-United Kingdom Trade Continuity Agreement
(Canada-UK TCA), is an interim measure that will be in place as Canada and the U.K. work towards negotiating a comprehensive bilateral free trade agreement over the next year.
As CETA will no longer apply to the U.K. beginning January 1, 2021, this new agreement will provide continued access to the benefits of CETA on a bilateral basis, including the elimination of tariffs on 98% of Canadian products exported to the U.K.. This will provide a competitive edge to Canadian exporters and businesses who will maintain preferential access to the U.K. market, even as the country exits the EU.
It is likely the new transitional deal will require valid CETA Origin Declarations for 2021. More information will be provided as it becomes available.
For more information, please call Brian Rowe, Director – Customs Compliance & Regulatory Affairs at (905) 882-4880, ext. 1213.
