UK Trade Agreements with Canada: Boosting Economic Ties
In the wake of Brexit, UK’s trade relationships with its global partners have been the subject of much speculation. Canada, with whom the UK holds a historic relationship, has emerged as a key partner for post-Brexit trade negotiations. The two nations have been working towards forging a closer economic relationship that will benefit businesses and individuals on both sides of the Atlantic.
Trade between the UK and Canada is already strong. In 2019, Canada was the UK’s 16th largest export market, with UK businesses exporting £11.4bn worth of goods and services to Canada. Similarly, Canada was the UK’s 15th largest import partner, with the UK importing £7.3bn worth of goods and services from Canada. The total trade in goods and services between the two nations was £18.7bn in 2019.
However, there is room for improvement in this trade relationship. With both nations exploring new opportunities following the UK’s withdrawal from the EU, there is a renewed focus on boosting trade ties between the UK and Canada.
In November 2020, the UK and Canada signed the Comprehensive Economic and Trade Agreement (CETA), which paved the way for a closer economic relationship between the two nations. CETA eliminates tariffs on 98% of goods traded between the two countries, providing significant opportunities for businesses on both sides of the Atlantic.
The agreement also includes provisions for protection of intellectual property rights, access to government procurement contracts, and easier trade in services. This will benefit businesses across a range of sectors, from agriculture to finance and from technology to creative industries.
The UK and Canada are also exploring ways to collaborate in areas such as science, innovation and research. The two nations share a deep commitment to combating climate change, and there is potential for joint initiatives in green technologies and renewable energy.
The CETA agreement will provide a boost to UK businesses by giving them access to a market of over 37 million people. This is particularly important for small and medium-sized enterprises (SMEs) which make up the majority of UK businesses and often struggle to enter new markets. Canada’s strong economy and skilled workforce provide a compelling proposition for UK businesses looking to expand their operations.
In conclusion, the UK and Canada’s historic relationship, shared values, and geographic proximity make them natural partners for trade and investment. With the CETA agreement, the two nations have taken a significant step towards a closer economic relationship that will benefit businesses and citizens on both sides. The agreement will provide opportunities for growth, innovation, and collaboration, and pave the way for a stronger post-Brexit future for both nations.