By Elishya Perera
MONTRÉAL, Québec (CWBN)_The post-Brexit trade deal between the United Kingdom and Canada may not come into immediate effect following the expiration of the Brexit transition period on December 31.
On November 21, the Department of International Trade in London issued a statement announcing that UK and Canada agreed to rollover provisions of the existing trade relationship through the European Union, while the parties plan on negotiating a new, bespoke UK-Canada trade deal next year.
However, the agreement is yet to be approved by the Canadian parliament, who’s last scheduled sitting day is Friday (Dec 11). Canadian Trade Minister Mary Ng introduced the bill in the Canadian legislature on Wednesday, which left just two days for the proposed deal to be debated and approved. If passed by the Parliament by Friday, the deal would then be introduced to the Senate for approval.
However, if the deal is not approved by the House of Commons this week, businesses in both London and Ottawa will have to pay tariffs for at least two weeks, since the lawmakers are set to return on January 25.
On January 1, following the expiration of the Brexit transition period, the UK will no longer be party to the Comprehensive Economic and Trade Agreement (CETA), a free-trade agreement between Canada and the EU, and unless a new deal is agreed, bilateral trade worth about £20 billion (US$26.64 billion) would be subject to World Trade Organisation tariffs.
However, Youmy Han, a spokesperson for the Canadian trade minister said the government is seeking a regulatory mechanism that could mitigate the issue in short term.
“As Minister Ng said yesterday, we are actively working with the UK on contingencies to ensure a smooth transition for Canadians and workers with no disruptions, and will have more to say on this soon,” she said.
The agriculture sector is one of the industries which will be significantly affected if a deal is not agreed.
The Canadian Cattlemen’s Association said on Wednesday that achieving a long-term free trade agreement with the UK is its highest priority since Canadian beef producers continue to face barriers when exporting to the UK. The Association said that in 2019, London imported 1,584 metric tons of beef from Canada and exported nearly twice that amount to Ottawa.
Other industries which would benefit from the deal include seafood, maple syrup, soft drinks, confectionary and much more.
