The UK and Canada are ‘close’ to agreeing a post-Brexit trade deal to replace the current deal which is operated through European Union (EU) membership.
Is believed that a deal could be confirmed next week, with the UK’s Brexit transition period ending on 31 December, meaning that the two countries would face tariffs from 1 January 2021 without a trade agreement.
A Government spokesperson said: “We’re committed to securing a continuity trade deal with Canada before the end of the transition period. Talks are at an advanced stage and are progressing well.”
The UK Government has so far either signed or agreed on post-Brexit trade agreements with 52 countries, with the accumulative trade between the UK and these countries totalling £146 billion in 2019.
The EU-Canada economic and trade deal was signed in 2016 and removes tariffs, but a new agreement is essential for both countries, with Canada being the UK’s fifth biggest trading partner, after Japan, Mexico, China and the US.
Justin Trudeau, the Canadian Prime Minister, stated last week that “the UK hasn’t had to negotiate trade deals in the past few decades, so there is an issue of not really having the bandwidth within Government to move forward”.
However, a breakthrough in discussions appears to have been reached, with Brexit talks reaching a crunch period and the Government seeking to agree trade deals with key partners, such as the historic deal agreed with Japan in October.
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