What tariffs will be avoided by this deal?

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Tariffs on British Exports to Canada to Be Avoided Under New Trade Agreement

An agreement between the United Kingdom and Canada will prevent approximately £42 million in tariffs on British exports. This arrangement ensures continuity in the trading relationship between the two nations as the UK's Brexit transition period concludes. The deal effectively "locks in" the existing trade worth £20 billion and lays the groundwork for future, more comprehensive trade negotiations.
Continuation of Existing Trade Terms

The agreement between the UK and Canada allows for the rollover of current EU-Canada trading arrangements. This was confirmed by UK Prime Minister Boris Johnson and Canadian Prime Minister Justin Trudeau during a video call. The intention is to maintain the established flow of trade without immediate disruption as the UK departs from the European Union's trading framework.
Establishment of a New Trade Deal Framework

Beyond maintaining current terms, the agreement signals the commencement of negotiations for a new, bespoke trade deal between the UK and Canada. These discussions are slated to begin in 2021, with the aim of creating an arrangement that better serves the specific needs of both economies. This move is part of the UK's broader strategy to establish independent trade relationships following its withdrawal from the EU.
Economic Certainty and Job Protection

International Trade Secretary Liz Truss highlighted that this agreement provides "certainty for thousands of jobs." By securing the existing trade relationship, the deal aims to mitigate potential negative economic impacts and support businesses that rely on trade between the two countries. This continuity is particularly important as both nations navigate evolving global economic landscapes.
Broader Context of UK Trade Negotiations

This agreement with Canada is one of several trade deals the UK is pursuing as it seeks to define its post-Brexit economic future. With the transition period ending on December 31, London is working to secure new trading partnerships to counterbalance any economic adjustments resulting from altered relations with the European Union, its largest market.

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