Canada, UK agree transitional measures to maintain flow of goods
Shady Salah – Media in Toronto
Canada and the UK on Tuesday agreed transitional measures to maintain the flow of goods between our countries from January 1. The temporary arrangements will be in place until the UK-Canada Trade Continuity Agreement (TCA) is approved by the Canadian and UK Parliaments early next year.
The UK and Canada have signed a Memorandum of Understanding (MOU) that ensures:
– Tariff-free trade is maintained for UK and Canadian businesses exporting goods eligible for preferential treatment under the TCA Access to Tariff Rate Quotas is maintained for products covered in the TCA.
– Rules of Origin that enable EU content and processing to count as originating in the UK as set out in the TCA.
Deputy Prime Minister and Minister of Finance, Chrystia Freeland, and Mary Ng, Minister of Small Business, Export Promotion and International Trade, welcomed the signing of a memorandum of understanding (MOU) between Canada and the United Kingdom, which lays out commitments each country will take to ensure continued preferential tariff treatment for goods from the date CETA ceases to apply to the United Kingdom until the Canada-United Kingdom Trade Continuity Agreement (Canada-U.K. TCA) is ratified and implemented, said a statement from the Global Affairs Canada.
In keeping with the MOU, the Government of Canada has issued the Canada-United Kingdom Trade Continuity Remission Order, 2021, in immediate effect, to minimize disruptions for Canadian importers. The order ensures that tariff benefits currently afforded to eligible imports from the United Kingdom under CETA, and replicated in the future Canada-U.K. TCA, are temporarily available to Canadian importers. In exchange, the United Kingdom has agreed to provide reciprocal tariff benefits for eligible Canadian exports to the United Kingdom. The remission order is intended to remain in effect until the Canada-U.K. TCA can enter into force through respective legislative procedures.
Canada is a trading nation. With this announcement, our government will ensure Canadian businesses that trade goods with the United Kingdom continue to have preferential access. This action is important for many businesses and jobs in Canada, which benefit from the strong economic ties between our 2 countries,” Chrystia Freeland said.