The UK and Canada have secured a deal which mirrors the existing European deal post BREXIT. Allowing the two countries the time needed to develop a comprehensive trade deal without interruption. This agreement doesn’t break now ground or add any additional benefits. It does however ensure that the status quo remains throughout 2021.
Is the new trade deal signed
This new trade deal has been agreed in principle but is not yet signed. Under the terms of the BREXIT withdrawal agreement no new deals can be signed until the transition period ends. The existing withdrawal agreement is due to run until the 31st December. That does not prevent the UK from agreeing trading deals in principle to be completed and signed at the start of January. The UK have been working on trade deals with major trading countries for the full 11 month transition period. All of which are yet to be fully signed off but a considerable number are agreed in principle. Ready to be finalised once the transition period comes to an end.
BREXIT and cargo
The trade agreement is good news for airlines and shipping lines alike. Air Canada have a daily operation into and out of the UK and this deal ensures UK trade can continue to move. With trade between the two countries now able to stay away from WTO rules. According to the Canadian government the UK is Canada’s most important commercial partner in Europe, 5th Largest globally. With Canadian firms owning or controlling interests in more than 1100 UK firms.
Boris Johnson confirmed :
Our negotiators have been working flat out to secure trade deals for the UK and from as early next year we have agreed to start work on a new, bespoke trade deal with Canada that will go even further in meeting the needs of our economy.Boris Johnson discussing the UK & Canada trade ageeement post BREXIT