However, Canadian companies should consider how new relationships between the UK and the EU could impact them at the end of the transition period, including the outcome of a trade agreement, and take appropriate steps to reduce risk. Opposition members on the House of Commons Trade Committee warned on Friday that they may not be able to pass a transposition bill in time for the extended recess of Parliament. The Canada-U.K. Trade Continuation Agreement extends tariff removal to 98% of goods exported between the two countries and creates the conditions for a more ambitious and sustainable agreement for the new year. The agreement could „include the potential to go further in areas such as digital trade, the environment and women`s economic empowerment,” says a UK government statement. Without them, Britain and Canada would be subject to trade tariffs as early as January 1, when the Brexit transition period ends and the UK will no longer be part of CETA, the EU-Canada trade agreement that came into force in 2017. Canada is the UK`s 12th largest trading partner, with total trade between the two countries worth about 17 billion pounds ($23 billion) in 2019. As an innovative, bespoke production company based in the United Kingdom, which is responding to a growing demand for McLaren super-cars among Canadian buyers, we welcome today`s news that Britain and Canada have reached a continuity agreement. It provides greater security and continuity for us and our Canadian business partners, customers and employees, while continuing to strengthen our presence in this important global market. This agreement also brings us closer to membership in the Trans-Pacific Partnership, a high-standard agreement in 11 dynamic Pacific countries.
Membership would strengthen market access for our businesses, help make us a global hub for technology and services trade, and strengthen the global consensus for rules-based free trade. The deal would be a major boost for British Prime Minister Boris Johnson in his efforts to set a new course for Britain as a global trading nation outside the EU. An announcement is expected within days, depending on who is familiar with the subject, provided they are not identified. Our negotiators have worked from afar to secure trade agreements for the United Kingdom and, since the beginning of next year, we have agreed to start working on a new, tailored trade agreement with Canada that will go even further to meet the needs of our economy. The British government had initially said it wanted to reach an agreement by mid-October at the latest to give national governments time to ratify it. If no agreement is reached before the end of the transition period, trade between the two parties will return to World Trade Organization rules, which could lead to significant delays and new tariffs. Today`s agreement provides the basis for the two countries to negotiate a new trade agreement that will improve the existing agreement between the EU and Canada. It will be adapted to the UK economy, with the potential to go further in new areas such as digital commerce, women`s economic empowerment and the environment.
Canadian Prime Minister Justin Trudeau said last week that the two countries could conclude negotiations for a new trade deal by January 1. The transition period between the UK and the European Union expires on 31 December 2020, meaning Britain will no longer be included in the agreements signed between the bloc and other countries. Whether it is manufacturers that are still shipping their products duty-free between the two counties or whether British companies can sell their services in the Canadian market, this is a real milestone. Last year, Canada accounted for about 1.5% of the UK`s total trade in goods and services. If there is an agreement, the details will be the