United Kingdom It has managed to maintain the same commercial terms with Canada that they had before Brexit, and that governed under the umbrella of the European Union after they had been signed in a negotiation between the EU and Canada.
Thus, once the Brexit transition period ends, on December 31, trade conditions between London and Ottawa will remain the same.
Boris Johnson, British Prime Minister, and his Canadian counterpart, Justin Trudeau, signed the agreement this Saturday morning via videoconference, according to the British Ministry of International Trade, and they hope to formally sign the treaty once it has passed the latest checks. legal.
Starting at the end of the year, once the United Kingdom has broken its ties with the community bloc, bilateral exchanges between both countries will continue to comply with the rules negotiated by the EU and Canada in their free trade agreement (CETA), in which the UK has participated so far.
The Minister of International Trade, Liz Truss, pointed out that the pact “underpins commercial exchanges” worth 20,000 million pounds (22,410 million euros) and provides “certainty for thousands of jobs,” reports Efe.
Truss stressed that this arrangement paves the way to begin talks in 2021 on a new specific trade agreement with Canada, one of the objectives that the Government has used in recent years as a potential benefit of Brexit for the United Kingdom.
“We hope to sign a new, more ambitious agreement next year, with the aim of creating more opportunities for companies and improving the lives of people across the country,” the minister said.
In this way, British exporters will avoid almost € 47 million in annual tariffs for their sales in Canada.
For now, British exporting companies will avoid the roughly 42 million pounds (47 million euros) a year in tariffs that they should have paid in the event that current trade terms had not been extended, according to estimates by the Ministry of International Trade.
The department said that future negotiations can bring greater benefits to the UK in areas such as “digital trade, women’s economic empowerment and the environment.”
Various business groups welcomed the agreement, reached five weeks before the end of the Brexit transition.
New victory for London, which ensures that its departure from the European Union with an important third country such as Canada is not affected for the moment
“There was always the danger that the end of the transition period meant losing broad access to that international market that we enjoyed as members of the European Union,” said Mike Cherry, President of the British Federation of Small Businesses.
“The fact that this new agreement maintains the small business terms that were in place is very welcome,” added Cherry.
The general director of the employers’ association Confederation of British Industry (CBI, in English), Josh Hardie, said, for his part, that the pact is “great news for companies”, and stressed that the agreement announced today “sets the bases for an even deeper commercial treaty ”.
The EU and London reinforce
Meanwhile, the tug of war continues between the British prime minister, Boris Johnson, and the president of the European Commission (EC), Ursula von der Leyen, on the occasion of the final fringes of the negotiation for Brexit that Michel Barnier is leading by the community. Just a few days ago, Johnson and Von der Leyes agreed ‘Redouble efforts’ towards a post-Brexit deal in a telephone conversation, a British government spokesman said.
Between Brussels and London there are still significant differences in some areas, including competition and fishing
The source noted that during the call, scheduled to Taking stock of the negotiationsJohnson noted that while progress has been made, “significant differences persist in several areas” of common concern, including competition and fisheries.
The two leaders agreed that their respective teams will continue negotiations next Monday in London in order to “Redouble efforts to reach an agreement”, which would come into effect at the end, on December 31, of the post-Brexit transition period, which was formally executed on January 31.
For their part, Johnson and Von der Leyen “will remain in contact,” the spokesman said. If they fail to negotiate a bilateral pact, as of January 1, 2021, the United Kingdom and the European Union (EU) will start trading based on the less beneficial generic regulations of the World Trade Organization (WTO).