The United Kingdom and Canada signed an interim free trade agreement on Saturday 21 November, pending negotiations on a future post-Brexit agreement. The Transitional Agreement incorporates the terms of the EU-Canada Comprehensive Economic and Trade Agreement (CETA). According to the UK government, it will support the UK’s automotive and agri-food industry sectors. Referring to the long term, the British Prime Minister, Boris Johnson, said, “We have agreed to start work next year on a new trade agreement that will go even further to meet the needs of our economy.”
Several representatives of major industrial groups have already welcomed the announcement this weekend, seeing it as continuity for their exports.
Since last year, the United Kingdom has concluded post-Brexit agreements with some 20 countries with high commercial potential. This is particularly the case for Switzerland, Norway and Iceland. Among these agreements, Canada ranks third in terms of trade volume. The British government added that this step brings the United Kingdom closer to potential membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which includes Canada and 10 other countries.
Once ratified by the Canadian Parliament, the agreement will come into force on 1 January 2021. (Original version in French by Léa Marchal)