The new agreement preserves the most important provision of CETA — the removal of tariffs on 98 per cent of Canadian exports to the United Kingdom — until a more comprehensive agreement can be reached. The United Kingdom is Canada`s fifth largest trading partner, with $29 billion in two-way merchandise trade in 2019. This agreement was one of many important trade agreements that have been an integral part of Mr. Trudeau`s economic and external agenda over the past five years, while the others were the Comprehensive and Progressive Trans-Pacific Partnership (PPAC) agreement with Asia-Pacific countries. Goldy Hyder, President of the Business Council of Canada, said he looked forward to reviewing the details of the agreement and believed in a “future chance to further improve our bilateral trade and investment relations as part of a broader pact.” “We believe that in the future there will be an opportunity to further strengthen our bilateral trade and investment relations with a comprehensive and ambitious free trade agreement,” Hyder said. “We know how to negotiate trade agreements. The UK has not had to negotiate trade deals in recent decades,” Trudeau said in an interview with the Financial Times. The Prime Minister said the biggest challenge was the “fork” within the British government, which began the year working not only on a trade agreement with the EU, but also on agreements with the US, Australia, Japan and New Zealand. Mr. Trudeau welcomed the continuity agreement and suggested that negotiations for a new comprehensive trade agreement with the United Kingdom would take several years. CLOCK What we know about Canada-UK. Interim Trade Agreements: At an online event hosted by the Financial Times, the Canadian Prime Minister said he remained optimistic about the prospect of a trade agreement between the two countries before the end of the year. Canada could easily negotiate a post-Brexit trade deal with Britain, Justin Trudeau said, while warning that negotiations could be delayed because British negotiators are out of practice.
Any obstacle to a deal is likely to come from Britain, as its negotiators were in talks with several nations, Trudeau warned. “There is the question that bandwidth within the [British] government is not really there to move forward on this issue,” he said. Canada and Britain have agreed on a rollover trade deal, countries announced on Saturday and promised to negotiate a broader deal after the expiration of Britain`s transition period after Brexit. Prime Minister Justin Trudeau says he expects Canada to be able to reach a new trade deal with the United Kingdom before reaching the 2021 timetable. “The UK has not had to negotiate trade deals in recent decades, so there is talk that it does not really have the room within the government to move forward on this issue,” he added. “This is a good time,” Canadian Prime Minister Justin Trudeau said in a video call with his British counterpart Boris Johnson and the respective trade ministers of both countries, shared on social media. The UK has left the EU, but its trade relations remain unchanged until the end of the year. That`s because it`s in an 11-month transition – designed to give both sides some time to negotiate a new trade deal.
The timetable for the passage of such a law is now very tight, but both countries have said that they do not want to penalize or disrupt companies that have benefited from CETA and that they depend on this two-way trade.