The UK and Canada have launched negotiations on a new Free Trade Agreement in Ottawa. Building on the benefits of the UK-Canada Trade Continuity Agreement, the new Free Trade Agreement will go further than ever before in areas like innovation, digital, data, the environment and women’s economic empowerment.
For example, the adoption of digital trading systems can make trade cheaper, faster and more secure for businesses. This could see more than 10,000 UK small and medium-sized businesses benefiting from lower barriers to trade such as simplified paperwork, encouraging more businesses to start trading with Canada.
The UK is Canada’s third largest trading partner and Canadian demand for imports is projected to grow by 45% by 2035. Canadian-owned businesses employ 108,000 people across the UK and additional investment resulting from a new deal could support jobs across the country and help level up the UK.
Responding to news of fresh negotiations with Canada to create an upgraded Free Trade Agreement, William Bain, Head of Trade Policy at the BCC, said:
“A recent BCC survey of more than 1,000 businesses found that Canada was in the top four global markets of interest to smaller UK exporters.
“These negotiations provide the opportunity to make some improvements to the Canada-UK continuity agreement – in areas like digital trade and to also boost trade facilitation measures through Single Customs Windows.
“We also see clear benefits in retaining the main thrust of the existing rules of origin allowing for the flexibility of including EU content in goods traded between the UK and Canada – which have preferential tariff treatment.”
You can read more about the trade negotiations here.