The benefits locked in under the agreement reached include:
- Future zero tariffs on UK car exports to Canada, which were worth £757 million in 2019, supporting factories and jobs in communities. Without this agreement, Canada's standard tariffs on cars of 6.1% would have applied.
- Tariff-free trade on 98% of goods that can be exported to Canada including beef, fish and seafood and soft drinks.
- UK and Canadian producers will continue to benefit from zero tariffs on many agricultural and seafood exports including chocolate, confectionery, fruit and vegetables, bread, pastries and fish.
Without the continuity agreement, Canadian food products such as maple syrup, biscuits and salmon could have been more expensive for British consumers as they would have faced taxes of up to 8% when entering the UK under the UK Global Tariff.[4]
Overall, the terms of the UK-Canada Trade Continuity Agreement are the same as the Comprehensive Economic and Trade Agreement. The text of the Agreement was expected to be released once signed by both parties.
Expiration
While the main agreement remains in force, certain chapters have expired:
- The preferential access deal for British cheesemakers into Canadian markets expired on the 31 December 2023.[5]
- From 1 April 2024, British car exporters into Canadian markets will have a tariff increase of 6.1% if they contain significant EU components; British-origin cars increased to require 55% UK components, previously 50%.[6]