Britain today struck a Continuity Trade Agreement with Canada, ensuring that the two countries’ £ 20 billion trade relationship will continue after Brexit.
The government said it had obtained an “agreement in principle” to renew the current trade agreements between the EU and Canada when the transition period ends on December 31.
Read more: UK signs postponement trade deal with Canada ahead of post-Brexit talks
This will pave the way for negotiations on a new trade deal, which will start next year.
“This is a fantastic deal for Britain which guarantees transatlantic trade with one of our closest allies,” Johnson said in a statement.
“British companies export everything from electric cars to sparkling wines to Canada, and today’s deal will ensure that trade continues to grow.
“Our negotiators have worked hard to secure trade deals with the UK and, early next year, we have agreed to start working on a new bespoke trade deal with Canada that will go even further to meet the needs of our economy. “
The deal will give certainty to UK companies exporting goods and services to Canada worth £ 11.4 billion.
Johnson has pledged to make improved trade deals to help establish a “global Britain” after Brexit.
While today’s renewal agreement only maintains current trade terms, the Commerce Department has pledged to strike a “more ambitious” deal next year, which could include areas such as trade. digital technology, the environment and women’s economic empowerment.
The government said it has now concluded trade deals with 53 countries, accounting for £ 164 billion in UK bilateral trade.
“Ensuring continued access to one of our major trading partners will be warmly welcomed by our business community,” said Adam Marshall, Managing Director of UK Chambers of Commerce.
“However, the most essential trade deal our business community needs is with the European Union.
“The companies expect the two sides to come to an agreement. We urge the government to redouble its efforts to ensure this as soon as possible to give businesses the clarity they need.
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Mike Cherry, President of the Federation of Small Businesses, said: “There was always a risk that the end of the transition period would mean the loss of the wider access to the international market that we enjoy under the accession to the EU.
“So it’s very encouraging to see new trade agreements with trading partners like Canada, which has long been seen as a crucial market by small businesses.