In this Wednesday, Dec. 4, 2019 file photo, British Prime Minister Boris Johnson, left, welcomes Canadian Prime Minister Justin Trudeau during official arrivals for a NATO leaders meeting at The Grove hotel and resort in Watford, Hertfordshire, England. THE CANADIAN PRESS/AP-Francisco Seco

Canada and U.K. make stopgap deal to avert tariffs after Brexit

Canada and U.K. make stopgap deal to avert tariffs after Brexit

OTTAWA — Canada and the United Kingdom have inked a temporary agreement that will head off an automatic increase in tariffs that was set to kick in when Britain leaves the European Union next week.

Deputy Prime Minister Chrystia Freeland announced the last-minute deal on Tuesday, ensuring Canadian goods such as maple syrup , lobster, beef and car parts aren’t slapped with British tariffs on Jan. 1.

“With this announcement, our government will ensure Canadian businesses that trade goods with the United Kingdom continue to have preferential access,” Freeland said in a statement.

“This action is important for many businesses and jobs in Canada, which benefit from the strong economic ties between our two countries.”

Canada and Britain conduct about $29 billion in trade each year, according to the federal government, with the U.K. ranks as Canada’s third-biggest export market.

Trade between the two countries is currently covered by the free-trade agreement that Canada has with the EU, but that will no longer be the case when Britain formally leaves the European bloc.

Officials in Ottawa and London negotiated a new treaty extending the terms of the EU deal to Britain after Brexit, but Parliament did not approve that agreement before rising for the Christmas break.

That sent both governments scrambling to figure out a way to stop the tariffs from being automatically re-imposed.

Freeland and International Trade Minister Mary Ng say the new memorandum of understanding between the two countries allows for tariffs to remain at their current levels until the full trade deal is approved.

British trade officials expressed concern and disappointment earlier this month that Canada’s Parliament wouldn’t formally ratify the new trade agreement ahead of Jan. 1.

The officials said they were concerned the delay would inflict “damage and destruction” on businesses, and blamed the situation on Canadian politicians who they said couldn’t set aside their partisan differences.

This report by The Canadian Press was first published Dec. 22, 2020.

The Canadian Press

Brexit

Just Posted

A representative for the office of Minister of Justice and Solicitor General Kaycee Madu says the new Red Deer drug treatment court is expected to be operational by the middle of 2022. (File photo by Advocate staff)
Red Deer drug treatment court expected to be up and running no later than mid-2022

The Government of Alberta expects the new Red Deer drug treatment court… Continue reading

Environment Canada says rain Tuesday evening will turn to snow. (File photo by THE CANADIAN PRESS)
Expect wet snow Tuesday night central Alberta

Heavy wet snow could accumlate with the potential for broken tree branches

FILE - In this Thursday, April 29, 2021 file photo, giant bucket-wheel excavators extract coal at the controversial Garzweiler surface coal mine near Jackerath, west Germany. A report by the International Energy Agency on Tuesday, May 18, 2021 says immediate action is needed to reshape the world’s energy sector in order to meet ambitious climate goals by 2050. This includes ending investments in new coal mines, oil and gas wells. (AP Photo/Martin Meissner, File)
Energy agency: End new fossil fuel supply investments

IEA report sets out 400 steps to transform how energy is produced, transported and used

A man inspects the rubble of destroyed commercial building and Gaza health care clinic following an Israeli airstrike on the upper floors of a commercial building near the Health Ministry in Gaza City, on Monday, May 17, 2021. (AP Photo/Adel Hana)
Strike from Gaza kills 2 as Israel topples 6-story building

Latest attack from Gaza on Tuesday hits packaging plant

The RCMP logo is seen outside Royal Canadian Mounted Police “E” Division Headquarters, in Surrey, B.C., on Friday April 13, 2018. A review by the national spy watchdog has found inconsistencies when it comes to federal efforts to ensure information sharing with foreign agencies does not result in torture. THE CANADIAN PRESS/Darryl Dyck
Spy watchdog calls for changes to ensure information-sharing does not lead to torture

Differences in federal departments stances when dealing with the same foreign agency creates concern

Red Deer musician Curtis Phagoo is glad the Alberta government is investing $2 million to help the province’s live music industry, but he would have liked the criteria to be expanded, so the money could be used as relief to cover revenue shortfalls. (Contributed photo by Cory Michaud)
Red Deer musicians welcome $2M in grants to help live music, but would have preferred relief program

The money is for future projects and can’t be used for retroactive expenses

Sheffield United’s Daniel Jebbison celebrates after scoring his side’s opening goal during the English Premier League soccer match between Everton and Sheffield United at Goodison Park in Liverpool, England, Sunday, May 16, 2021. THE CANADIAN PRESS/AP-Alex Pantling/Pool via AP
Canadian teenager Daniel Jebbison turns heads with Premier League goal

Jebbison, 17, is the youngest player in Premier League history to score on his first start in England’s top tier

This image released by Universal Pictures shows Nathalie Emmanuel, left, and Vin Diesel in a scene from “F9.” (Giles Keyte/Universal Pictures via AP)
The blockbuster movie makes a comeback this summer

Last year, summer earnings were $176 million, down 96% from 2019

FILE - In this Feb. 3, 2021, file photo, exile Tibetans use the Olympic Rings as a prop as they hold a street protest against the holding of the 2022 Beijing Winter Olympics, in Dharmsala, India. Groups alleging human-rights abuses in China are calling for a full boycott of the Beijing Olympics, which is sure to ratchet up pressure on the International Olympic Committee, athletes, sponsors, and sports federations. A coalition of activists representing Uyghurs, Tibetans, residents of Hong Kong and others, issued a statement Monday, May 17, 2021 calling for the “full boycott,” eschewing lesser measures like “diplomatic boycotts" and negotiations with the IOC or China. (AP Photo/Ashwini Bhatia, File)
AP Exclusive: Full-blown boycott pushed for Beijing Olympics

AP Exclusive: Full-blown boycott pushed for Beijing Olympics

Canada's Eric Lamaze riding Fine Lady 5 during the CP International competition at the Spruce Meadows Masters in Calgary, Alta., Sunday, Sept. 8, 2019. Canada's most decorated show jumper has withdrawn from consideration for the Tokyo Olympics. THE CANADIAN PRESS/Jeff McIntosh
Canadian show jumper Eric Lamaze withdraws from Tokyo short list

Canadian show jumper Eric Lamaze withdraws from Tokyo short list

Toronto Raptors head coach Nick Nurse questions a foul call during the first half of an NBA basketball game against the Cleveland Cavaliers Monday, April 26, 2021, in Tampa, Fla. Nurse says it was the COVID-19 outbreak in March that spiked his team's chances for a post-season run.THE CANADIAN PRESS/AP/Chris O'Meara
Nurse faces a busy off-season, much busier if Canada qualifies for Tokyo Olympics

Nurse faces a busy off-season, much busier if Canada qualifies for Tokyo Olympics

Hockey Hall of Fame inductee Danielle Goyette speaks to reporters during a press conference in Toronto on Friday, November 10, 2017. Goyette has been named director of player development for the NHL's Toronto Maple Leafs and their American Hockey League affiliate. THE CANADIAN PRESS/Christopher Katsarov
Hayley Wickenheiser, Danielle Goyette together again on Toronto Maple Leafs staff

Hayley Wickenheiser, Danielle Goyette together again on Toronto Maple Leafs staff

Most Read