Grim prospects of U.K.-Canada trade deal by end of year

The U.K. is preoccupied with ensuring there’s not a hard Brexit from the EU

A post-Brexit deal in Britain with the European Union is being prioritized before any deal is likely to be reached with Canada.

As prospects of a trade deal between the United Kingdom and the European Union collapse, there is growing doubt in a post-Brexit pact involving Canada being completed by the end of the year.

The U.K. left the EU on Jan. 31 and is nearing the end of an 11-month implementation period where essentially agreements remain status quo while the U.K. negotiates a more permanent agreement with the EU and other countries.

But talks between the U.K. and EU have so far gone poorly and Prime Minister Boris Johnson is now preparing voters to enter 2021 without a trade agreement in place.

A deal between the two is likely being prioritized over negotiations with Canada, but the U.K. has agreed in principle to some bilateral trade agreements.

When the calendar turns, the U.K. will no longer be included in the Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU.

Conservative Party of Canada critic for export promotion and international trade, Tracy Gray says companies are looking for certainty as 2021 approaches.

“We’re at a stage right now where the deadline is quickly approaching and we’ve got a number of industries that are very concerned,” said Gray, noting the near $20 billion worth of goods Canada exported to the U.K. last year.

Last month, the Canadian Chamber of Commerce and Confederation of British Industry said in a joint release that the “clock is ticking” on completing a deal.

“The benefits businesses have under CETA are set to disappear and without a trade deal in place both our countries will be going into uncharted territory,” they said.

Mary Ng, the federal minister responsible for international trade, continues to say both parties are working on finishing a transitional agreement before the end of the year.

In response to a question on the matter during question period in September, Ng said she remains in close communication with the U.K.

“The U.K. trade secretary is really pleased that we will continue to work with the U.K. to build on our strong trade agreement,” she said. “We are going to continue working on a solid path for both of our countries to grow our economies and benefit our people on a transition agreement that will ensure continuity for businesses here in Canada and for workers and businesses in the United Kingdom.”

While the U.K. says trade talks with Canada have begun, opposition MPs like Gray contend Ng and the Liberal government are failing to be transparent about the status of negotiations.

Earlier this year, the governing Liberals agreed to inform parliamentarians of any negotiations it enters into within 90 days – but by mid-October, no notification has been made.

Meanwhile, there is continued speculation the U.K. will look to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The free trade deal currently includes 11 countries, including Canada.

About the author


D.C. Fraser

D.C. Fraser is Glacier FarmMedia’s Ottawa-based reporter. Growing up mostly in Alberta, Fraser also lived in Saskatchewan for ten years where he covered politics, including a stint teaching at the University of Regina’s School of Journalism. He is an avid fan of the outdoors and a pretty good beer league hockey player. His passion for agriculture and agri-food policy comes naturally: Six consecutive generations of his family have worked in the industry.



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