Canada–United Kingdom Trade Continuity Agreement Overview and Benefits

The Canada–United Kingdom Trade Continuity Agreement is a significant deal that has been making waves in the global trade scene. The agreement aims to maintain a free trade relationship between Canada and the UK after Brexit.

The agreement preserves the benefits of the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which has been in place since 2017. This means that Canadian businesses can continue to export goods to the UK without facing tariffs or other trade barriers.

One of the key benefits of the agreement is that it eliminates tariffs on over 98% of Canadian goods exported to the UK. This includes popular exports like lumber, aluminum, and energy products.

Tariff rate quotas for cheese exports from the UK to Canada have been tailored to the UK's specific needs. UK cheese exporters can export cheese tariff-free if the importer is a license-holder under Canada's WTO cheese quota.

To benefit from the new preferential tariff treatment, importers must complete Form B3-3, Canada Customs Coding Form. In Field No. 14, "Tariff Treatment", enter the UKT tariff treatment code "34".

For textile and apparel products, importers are required to obtain an import permit and complete Field 26 of the B3 as stated above with P.C. number: 21-241.

Tariff rate quotas are an important aspect of international trade agreements, and the UK-Canada trade agreement is no exception. Tariff rate quotas in the agreement have been tailored specifically to the UK.

There is no outward tariff rate quota for cheese in the UK-Canada trade agreement. This means that UK cheese exporters will be able to export cheese tariff-free if the importer is a license-holder under the non-EU sources reserve of Canada's WTO cheese quota.

To check the latest information on UK cheese exports to Canada, you can read the Notice to exporters 2024/01: update on UK's cheese exports to Canada. This notice provides valuable insights and updates on the quota and licensing requirements for cheese exports.

From 1 April 2024, UK exporters can no longer consider EU inputs as originating in their exports to Canada.

You'll need to ensure your products still meet the Rules of Origin set out in Annex 5 of the UK-Canada trade agreement to benefit from preferential access.

UK exporters can still use EU materials in their exports to Canada, but they must be sufficiently worked or processed in the UK to meet the Rules of Origin.

This means you can still use EU materials, or other non-originating materials, in your exports to Canada as long as they've been sufficiently processed in the UK.

The Canada-UK TCA includes a protocol on mutual acceptance of conformity assessment results, which allows SCC-accredited conformity assessment bodies to certify products against UK requirements for Great Britain.

This means that Canadian conformity assessment bodies can have their scopes of accreditation extended to include UK requirements, making it easier for Canadian products to be certified for the UK market. SCC-accredited conformity assessment bodies can also become approved bodies in the UK for Great Britain.

For UKAS to be recognized in Canada, they need to establish relationships with Canadian authorities, just like SCC-accredited conformity assessment bodies do in Canada.

Conformity assessment is a crucial step in ensuring that products meet the required safety and quality standards. The UK-Canada TCA contains a protocol on the mutual acceptance of the results of conformity assessment, which covers various product categories, including construction products, electrical and electronic equipment, and recreational craft.

The protocol allows UK and Canadian conformity assessment bodies to apply to test to the other country's regulations in specific sectors, such as electromagnetic compatibility (EMC), radio equipment, and equipment for explosive atmospheres (ATEX).

You can search the UK Market Conformity Assessment Bodies (UKMCAB) database to source UK government-appointed conformity assessment bodies.

The UK-Canada TCA also contains a separate protocol relating to the mutual acceptance of the results of conformity assessment for the good manufacturing practice (GMP) of pharmaceuticals.

The UK legislation in scope of the agreement is The Human Medicines Regulations 2012 and The Veterinary Medicines Regulations 2013.

The Canada-UK TCA includes the protocol on mutual acceptance of conformity assessment results, which SCC is implementing on behalf of the government of Canada.

Canadian conformity assessment bodies can have their scopes of accreditation extended to certify products against UK requirements for Great Britain (GB) related to product categories included in the protocol.

If a Canadian conformity assessment body has a legal presence in Canada, they are eligible for designation as an approved body in the UK for Great Britain.

The origin declaration is the required proof of origin for claiming preferential tariff treatment under the CUKTCA. It should be completed in English or French and is contained in Annex 2 of the Protocol on Rules of Origin and Origin Procedures of CETA.

This origin declaration must be provided on an invoice or any other commercial document that describes the originating product in sufficient detail to enable its identification.

Importers must have the origin declaration completed by the exporter in their possession, along with any necessary permits, to claim the preferential tariff treatment.

The Canada-United Kingdom Trade Continuity Agreement has brought a lot of benefits for services and investment between the two countries. The agreement provides preferential conditions for bilateral trade in services and investment, giving legal certainty to UK and Canadian services suppliers and investors.

This means that UK businesses can temporarily move highly skilled professionals to Canada to provide services. It's a great opportunity for UK companies to expand their reach and offer their expertise to Canadian clients.

The agreement also sets out measures that facilitate investment between the UK and Canada, ensuring fair treatment for established investments and investors. This will help to create a stable and predictable environment for businesses to invest and grow.

One of the key aspects of the agreement is the continuity of measures that remove barriers to establishing UK investment in Canada. This will help UK businesses to establish themselves in Canada without facing unnecessary obstacles.

The agreement also covers the resolution of investment disputes between investors and states, including financial services. However, these provisions won't come into force immediately, and will instead be subject to a comprehensive joint review.

Here are some of the key benefits of the agreement for services and investment:

The Canada-United Kingdom Trade Continuity Agreement Implementation Act received Royal Assent on March 17, 2021 and came into force on April 1, 2021.

The Agreement, also known as CUKTCA, came into effect on April 1, 2021, marking a significant milestone in the implementation of the trade agreement.

CUKTCA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff Act, providing clarity on who benefits from the agreement.

The mutual acceptance of conformity assessment results is a key aspect of the agreement, with the SCC implementing the protocol on behalf of the government of Canada.

The Canada-United Kingdom Trade Continuity Agreement Implementation Act received Royal Assent on March 17, 2021, and came into force on April 1, 2021.

This marked a significant milestone in the implementation process. The act was designed to facilitate a smooth transition between the UK's departure from the EU and the new trade agreement.

CUKTCA, which stands for the Canada–United Kingdom Trade Continuity Agreement, means the Agreement as defined in section 2 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act.

This clarification helps to ensure that all parties involved in the agreement understand its terms and conditions.

A CUKTCA beneficiary has the same meaning as in subsection 2(1) of the Customs Tariff Act.

The Canada-UK TCA includes a protocol on mutual acceptance of conformity assessment results, which SCC is implementing on behalf of the government of Canada.

SCC is working together with UKAS to implement the first product group category, ATEX – Equipment for potentially explosive atmospheres.

The Canada-UK TCA came into force in 2021, marking a significant milestone for SCC recognition in the UK.

SCC and UKAS are collaborating closely to ensure a smooth implementation process for ATEX.

The Canada–United Kingdom Trade Continuity Agreement has some fantastic benefits for both countries. One of the key advantages is the removal of tariffs on a wide range of goods.

Under the agreement, the UK can export cars to Canada without paying any tariffs, which was worth £757 million in 2019. This is a huge boost for factories and jobs in the UK.

Tariff-free trade is also available on 98% of goods that can be exported to Canada, including beef, fish and seafood, and soft drinks. This means UK businesses can sell their products to Canada without any extra costs.

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. This is great news for foodies and businesses alike.

If the agreement hadn't been in place, Canadian food products like maple syrup, biscuits, and salmon could have been more expensive for British consumers, with taxes of up to 8% when entering the UK.

Here's a breakdown of the goods that will be tariff-free under the agreement:

The agreement also provides preferential conditions for bilateral trade in services and investment between the UK and Canada. This gives legal certainty for UK and Canadian services suppliers and investors.

UK businesses can temporarily move highly skilled professionals to Canada to provide services, making it easier for UK companies to expand their operations.

The agreement sets out measures to facilitate investment between the UK and Canada, ensuring continuity of measures that remove barriers to establishing UK investment in Canada, and fair treatment for established investments and investors.

However, the provisions on the resolution of investment disputes between investors and states won't come into force with the rest of the agreement, and will be subject to a comprehensive joint review.

The Canada-United Kingdom Trade Continuity Agreement is a free trade agreement between Canada and the UK that was created following BREXIT.

It's based on the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union.

The agreement was signed in 2020 and entered into force in 2021.

This agreement aims to facilitate trade between Canada and the UK and support better access and opportunities for Canadian businesses to be more competitive in the UK market.

The UK has also signed a trade agreement with Canada, known as the UK-Canada Trade Continuity Agreement (TCA), which came into force on 1 April 2021.

The UK is also negotiating an upgraded free trade agreement with Canada.

This agreement is designed to provide continuity in trade between the two countries, ensuring that businesses can continue to operate smoothly despite the UK's departure from the EU.