That is why we call on both sides to return to the negotiating table as soon as possible in order to reach a comprehensive and more ambitious pact, which will eliminate tariffs and non-tariff barriers, establish liberal rules of origin and create a level playing field, allowing for stronger trade and economic growth in both directions of agriculture and agri-food. However, there could be changes in EU-UK relations or changes in the UK`s internal processes and regulations that could affect the facilitation of trade between Canada and the UNITED Kingdom. The Government of Canada will continue to observe how Canada`s trade with the United Kingdom could be affected in the short to medium term. The UK`s withdrawal (“Brexit”) is governed by a negotiated withdrawal agreement between the UK and the EU, which provides for the UK to be in a transitional period with the EU until 31 December 2020. During the 11-month transitional period, the UK is largely treated as an EU member state, as it can benefit from EU trade agreements with third countries such as Canada. As a result, trade between Canada and the United Kingdom is subject to CETA until December 31, 2020. For more information on the other immediate trade effects of Brexit and what the transition period means for Canada, click here in our newsletter. While the legal text of the agreement is still under review and has not yet been published, the Government of Canada has indicated that Trade in Canada and the United Kingdom transfers much of CETA`s trade agreements to Canada-UK trade relations, including, but not limited to: regardless of the outcome of trade negotiations between the UK and the EU. , Canada`s trade with the EU remains governed by the terms of CETA. The value of goods traded between Canada and the United Kingdom was $29 billion in 2019.
It is estimated that approximately 20% of Canadian products imported into the United Kingdom, including agriculture and seafood, would have faced tariffs if no agreement had been reached, ceta would be replaced by CETA. For the United Kingdom, the absence of a continuity agreement would have meant an additional customs burden for the United Kingdom to Canada, estimated at $42 million. In less than two years, the UK government has concluded trade agreements with 55 countries representing 170 billion pounds of bilateral trade in the United Kingdom. Tracy Gray, a conservative international trade critic, said Saturday that she welcomed the conclusion of the talks, but said the Liberals had left the law “until the 11th hour.” Regardless of the outcome of the negotiations on the future relationship between the UK and the EU, whether the transition period ends without an agreement between the EU and the UK or an agreement covering only part of the current trade relationship, it is likely that at the end of the transition period there will be immediate changes to the TRADE and investment rules between the UK and the EU.