Britain and Canada have collectively approved an interim trade agreement that guarantees continuity when Brexit transition period expires.
“The UK and Canada have secured in their current negotiating relationship, worth £20 billion ( €22.5 billion), and released to begin negotiating a new more aggressive trade deal as early as next year.
The transition period among the UK and the European Union expires on December 31, 2020, which suggests that Britain will not be included in agreements signed between the bloc and other countries.
The deal confirmed with Canada means the countries will continue to trade under the same regulations as previously, while they try to negotiate a “bespoke” agreement.
The British government says the ability to stop free trade agreements with countries around the world is one of the main advantages of leaving the EU. It is banking on increased trade with nations such as the United States and India to offset any adverse impact from severing ties with the EU, which accounted for 47% of Britain’s overall trade last year.
Canada considered for about 1.5% of the U.K.’s total trade in goods and services last year. Canadian Prime Minister Justin Trudeau described the signing as “a good sign”.
“The trade relationship and the historic bond between Canada and the UK is just so strong that being able to make sure we will seamlessly transitioning through with this situation, what are we calling it, that’s correct, the Canada-UK trade continuity agreement, which is perfect to make sure that our businesses with you continue to work well together.
“The UK is our 5th largest trading partner in the world,” he added.