A Canada-UK trade deal has been agreed for post-Brexit, as Justin Trudeau and Boris Johnson commit to deepening their relationship over environmental issues.
Liz Truss, the International Trade Secretary, on Saturday secured the agreement with “friend and ally” Canada in a move that is expected to pave the way for negotiations on a tailor-made deal between the two countries next year.
The environment, digital trade and women’s economic empowerment are some of the possible areas of collaboration in future discussions.
The formal ‘agreement in principle’ between the UK and Canada locks in certainty for UK businesses trading goods and services with Canada worth £20bn.
On a four-way Zoom video call, Mr Johnson, Mr Trudeau, Ms Truss and her Canadian counterpart Mary Ng, agreed to roll over current EU-Canada trading arrangements and begin negotiations on a new, bespoke deal in 2021.
The Department for International Trade said it avoids an estimated £42m of tariffs exporters in the UK would have faced if the Government had failed to get a deal.
Mr Johnson said: “This is a fantastic agreement for Britain which secures transatlantic trade with one of our closest allies. British businesses export everything from electric cars to sparkling wine to Canada, and today’s deal will ensure that trade goes from strength to strength.
“Our negotiators have been working flat out to secure trade deals for the UK, and from as early next year we have agreed to start work on a new, bespoke trade deal with Canada that will go even further in meeting the needs of our economy.”