UK secures temporary rollover trade deal with Canada

Last year, the UK exported £344m worth of agri-food goods to Canada
Last year, the UK exported £344m worth of agri-food goods to Canada

Farmers will continue to benefit from zero tariffs on agri-food exports to Canada as the UK and Canadian governments have agreed to roll over existing trading arrangements.

The UK has secured a continuity trade deal with Canada worth £20 billion, the Department for International Trade (DIT) has said.

Talks on a new, bespoke trade deal between the two countries will commence next year.

Overall, an estimated £42 million tariff burden on UK exports has been saved because of the temporary rollover in trade terms, DIT explained.

The benefits under the agreement include tariff-free trade on 98% of goods that can be exported to Canada including beef, fish and seafood.

Farmers will continue to benefit from zero tariffs on agricultural and seafood exports. Last year, the UK exported £344m worth of agri-food goods to Canada.

Without the continuity agreement, Canadian food products could have been more expensive for British consumers, as they would have faced taxes of up to 8% when entering the UK Global Tariff.

Prime Minister Boris Johnson said: "This is a fantastic agreement for Britain which secures transatlantic trade with one of our closest allies.

"British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength."

International Trade Secretary Liz Truss added that the agreement underpinned £20 billion worth of trade and locked in certainty for the thousands of jobs.

"We look forward to striking a new more ambitious deal next year with the aim of creating more opportunities for businesses and improving the lives of people across the country."

The UK-Canada Trade Continuity Agreement will be subject to final legal checks before it is formally signed.