Canada trade deal offers boost to British business and opens the door for future trade

21 Sep 2017 01:55 PM

Firms across the UK will be able to take advantage of a near-total removal of tariffs on exports to Canada, as the EU-Canada Comprehensive Economic and Trade Agreement (CETA) came into effect yesterday (21 September).

• UK businesses can take immediate advantage of the removal of 98% of tariffs on goods and services
• Benefits for businesses across multiple sectors including food and drink, manufacturing and construction
• Government committed to seeking continuity in trade and investment relationships with third countries as the UK exits the EU

Firms across the UK will be able to take advantage of a near-total removal of tariffs on exports to Canada, as the EU-Canada Comprehensive Economic and Trade Agreement (CETA) comes into effect today (21 September).

This means 98% of import duties will be scrapped, giving UK companies easy access to a valuable market of more than 35 million people, opening the door for companies to strike up productive relationships for future trade with Canada and make the most of high demand for world-leading British goods and services.

The deal will also:

• cut duties on 92% of food and drink products including beef, cheese and marmalade to zero
• allow zero tariffs on spirits including gin, vodka and whiskies
• eliminate nearly all tariffs on manufactured products such as cars

The UK is Canada’s second largest provider of service imports and CETA will mean that even more British ingenuity and expertise will support Canadian public projects, as UK firms are now able to bid for contracts in areas such as finance, cyber and engineering.

International Trade Secretary, Liam Fox, said:

CETA opens the door for UK companies to trade easily and cheaply with a valuable market in which there is considerable demand for British products, skills and expertise.

It is also an important blueprint for what our future trading relationship with Canada could look like. As an international economic department, we will help UK companies to make the most of this boost to bilateral trade and lay solid foundations for our trading ties with Canada.

Canadian Minister of International Trade, François-Philippe Champagne, said:

CETA sets new and progressive standards for all trading nations. As long standing trading partners, Canada and the UK, remain steadfast in their joint commitment to the benefits of global free trade. I am confident that with CETA, we have set the stage for exciting opportunities for British and Canadian companies alike.

The UK exported more than £7 billion worth of goods and services to Canada in 2015 and this new deal allows British businesses to take further advantage of this.

The UK is Canada’s sixth largest source of goods imports and second largest source of service imports. DIT is helping UK companies make the most of the opportunities CETA brings and wants British firms to seize upon the chance to boost business in Canada.