Canada ratifying trade continuity agreement with the UK

Work on a permanent agreement is next.Ottawa—Canada has ratified a trade continuity agreement with the United Kingdom following approval of legislation by Parliament and it should be in effect by April 1, says International Trade Minister Mary Ng.The agreement became necessary because of the UK's exit from the European Union and “will provide Canadian exporters and businesses with continued preferential access to the UK market and 98 per cent of Canadian products will continue to be exported to the UK tariff-free,” Ng said.Canada and the U.K. now are preparing for negotiations on a new free trade agreement, she said. Ottawa launched public consultations on March 12 on what should be the priorities for the permanent agreement. The UK's bid to join the Pacific free trade deal, which Canada already is a member of, will be part of the negotiations.“As we continue to address the pandemic, and look ahead, international trade will be essential to ensuring a strong, inclusive recovery that generates growth and creates good jobs and prosperity for Canadians,” Ng said.Claire Citeau, Executive Director of the Canadian Agri-Food Trade Alliance, said “the entry into force of the transitional deal is good news for Canadian agri-food exporters seeking stability and predictability in important UK market as it is designed to ensure there is no trade disruption for businesses in the wake of Brexit. Now we need to go beyond stop gap measures.”A comprehensive trade agreement that delivers ambitious outcomes and growth opportunities is what's really needed now, she said. Done right, it would boost trade between Canada and the U.K. and help both of our economies grow.“We look forward to the launch of negotiations of a permanent, comprehensive and ambitious free trade agreement between Canada and the UK; at the earliest opportunity.”The Canada-UK trade relationship is currently governed by a memorandum of understanding which provides reciprocal tariff preferences on goods shipped between both countries until the Canada-UK Trade Continuity Agreement is ratified and implemented.The UK is Canada's fifth largest trading partner. The continuity agreement will ensure trade between Canada and the UK will continue under much the same terms as it did before the UK quit the EU.It will carry forward the tariff elimination on 99 per cent of Canadian products exported to the United Kingdom and fully protect Canadian producers of all supply-managed products, she said. “Canadian businesses and workers in many sectors rely on our interconnected trade relationship, from farmers and fish harvesters to financial service providers and innovators.“They have told us that what they want most at this time is stability. This agreement provides exactly that.” The agreement fully protects “our closely integrated supply chains and continued access for our exporters.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.