UK and Canada agree temporary measures for goods exporters
Topics: CANADA UK
These 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
In addition, the UK and Canada are finalising arrangements to maintain shared recognition rules on compliance of good manufacturing practices (GMP) for pharmaceutical products, and to provide continuity in regard to the mutual acceptance of the results of conformity assessment for radio and telecommunications terminal equipment and Electromagnetic compatibility.
The UK government will work with UK businesses to provide clear guidance on the arrangements for 1 January and on any temporary changes that may have an impact on them between 1 January and the TCA coming into force in early 2021.
Total trade between the UK and Canada was worth £19.9 billion in the four quarters to end of Q1 2020, of which £11.5 billion was trade in goods.
These temporary measures will be maintained until the UK-Canada Trade Continuity Agreement comes into force or is provisionally applied. ■