Historic agreement. They cheered, but not with the EU. Billion-pound business transactions

The UK and Canada agreed on Saturday on an interim post-Brexit trade deal which will take effect on 1 January 2021 and will replicate on a bilateral basis the deal that the UK has benefited from so far as an EU member state, it announced the British ministry. of international trade, according to AFP.

British Prime Minister Boris Johnson and Canadian Prime Minister Justin Trudeau, together with British Minister of International Trade Liz Truss and his Canadian counterpart Mary Ng, agreed, following the teleconference talks, an agreement in principle containing the provisions of the current EU-Canada trade agreement. this ministry states in a statement.

Trades worth 20 billion pounds

“The agreement reached today strengthens trade for 20 billion pounds (22.4 billion euros) and ensures the safety of thousands of jobs,” said Minister Liz Truss, who welcomed the ties that unite from a historical and cultural viewpoint of the United Kingdom by “friends and allies of Canada”.

“It is a fantastic deal for the UK and it ensures transatlantic trade with one of our closest allies,” said Prime Minister Boris Johnson, expressing hope that the deal will strengthen British exports to Canada. electric with sparkling wine “.

The agreement, which has not yet been officially signed, will be provisional, as negotiations begin next year between the governments of London and Ottawa to “conclude a new, more ambitious agreement,” a “customized” agreement that will cover areas such as the environment and online commerce, explains Minister Liz Truss.

The British get rid of customs duties

This interim agreement only incorporates the terms of the EU-Canada Free Trade Agreement (CETA), avoiding the imposition of customs duties once the post-Brexit transition period in which the UK applies European rules after the 1st January officially withdrew from the EU.

Negotiations between the UK and the EU on their post-Brexit relations will continue next week. While some progress has been made, especially in secondary cases, significant divergences remain in three key issues, namely competition, European fishermen’s access to British waters and the settlement of disputes in the future agreement.

Overall, Brussels wants an extended deal that also includes EU competition, environmental or taxation rules, while London just wants a classic free trade agreement. If the negotiations ultimately fail, trade relations between the EU and the UK will only take place under the rules of the World Trade Organization (WTO).