The United Kingdom and Canada agreed to continue trading under the same terms that govern under the current umbrella of the European Union (EU) once the Brexit transition period ends, on December 31, the British Government announced this Saturday.
The Prime Minister of the United Kingdom, Boris Johnson, and his Canadian counterpart, Justin Trudeau, sealed an agreement in principle this morning through a videoconference, according to the British Ministry of International Trade, and hope to formally sign the treaty once it has passed. the latest legal checks.
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 billion pounds (26 thousand 579 million dollars) and provides “certainty for thousands of jobs.”
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 throughout the country,” the minister said.
For now, British exporting companies will avoid the roughly 42 million pounds ($ 55.8 million) a year in tariffs that they should have paid had current trade terms not been extended, according to estimates from the International Trade Ministry.