The UK and Canada have agreed to sign a temporary trade deal, which will continue on the same terms as the current EU deal.
In an effort to reassure business and keep trade flowing between the two countries, Canada and the UK have agreed to a carry on trading as they were until further notice. This deal does not include any new benefits.
The deal, which was an “agreement in principle”, was made by the countries’ two leaders, who believed this was the most suitable way forward until Britain’s EU trade deal is finalised.
The deal is based on the already existing Comprehensive Economic and Trade Agreement signed between Canada and the EU. In a statement celebrating the UK’s new deal, the Prime Minister of Canada, Justin Trudeau, said a similar comprehensive deal with the UK would take years to negotiate.
The Canadian PM followed this by saying: “Now we get to continue to work on a bespoke agreement, a comprehensive agreement over the coming years that will really maximise our trade opportunities and boost things for everyone.”
Mr Johnson echoed his counterpart’s pleasure over the deal, saying: “This is a fantastic agreement for Britain which secures transatlantic trade with one of our closest allies. British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength.”
The PM also stated that, from early next year, we will “start work on a new bespoke trade deal with Canada that will go even further in meeting the needs of our economy”.
The Labour Party also welcomed the “necessary” deal with the following statement by the Shadow International Trade Secretary, Emily Thornberry: “It is now vital that Boris Johnson and Liz Truss show the same urgency in securing the other 14 outstanding continuity agreements with countries like Mexico, Ghana and Singapore, where a total of £60bn of UK trade is still at risk and time is beginning to run out.”
Although the UK has left the EU, no new trade agreements can begin until the 1st of January.
This has not stopped the UK from negotiating new trade agreements. Currently, the UK has negotiated trade deals with a number of countries other than Canada, with many other agreements in the works.
The deals already negotiated include Japan, Switzerland and Israel. The UK is also in the process of negotiating deals with Australia, New Zealand, the USA and South Africa.