Canada, Britain ink short-term deal to avoid post-Brexit tariffs
Britain and Canada announced on Tuesday that they sealed a short-term deal that will secure the free trade agreement between the two countries continue after Brexit until the Canadian parliament enacts a new bilateral agreement.
“The United Kingdom and Canada have today agreed transitional measures to maintain the flow of goods between our countries from Jan. 1,” Britain’s international trade department remarked in a statement.
As the United Kingdom’s transition period out of the European Union expires on Dec. 31, it has arranged several roll-over bilateral deals to retain its trade pact with countries, including Canada.
However, Canada’s House of Commons was unable to approve the document in time, which results in imposing tariffs on each other that will commence on Jan. 1
Bilateral annual trade in goods between Britain and Canada is worth C$29 billion ($22.5 billion).