Canada & UK To Commence Trade Negotiations In April 2022

In an announcement on the government of Canada website in December 2021, International Trade Minister, Mary Ng, stated that negotiations would further develop the roll-over agreement between the two countries – an agreement that was quickly signed to avoid disruptions to trade after the UK left the European Union.

“Canada and the United Kingdom share a broad and extensive relationship, built on shared history and values and strong economic ties,” the statement said.

“The Government of Canada now has the opportunity to negotiate an ambitious, modern and comprehensive FTA that best reflects Canada’s inclusive approach to trade and our bilateral trade relationship with the United Kingdom.”.

The deal is expected to benefit both economies as Canada exports $19.9 billion of goods to the United Kingdom while the UK exports $7.8 billion to Canada. Top exports include machinery, precious stones and metals, motor vehicles and parts, pharmaceutical products, and aircraft parts. The United Kingdom is also Canada’s second largest services trading partner, after the United States.

The government of Canada held public consultations in April 2021 to solicit views of Canadians on a Canada-United Kingdom trade agreement. Of the 42 submissions received by the government, 28 (including a comprehensive submission by CANZUK International) suggested that any bilateral free trade agreement should constitute a step towards a broader trade agreement between Canada, Australia, New Zealand and the UK, with free movement of people being cited as a key area of interest.

The commencement of negotiations will arrive shortly after Australia and the UK finalised their free trade agreement this week (including provisions for visa mobility) and New Zealand agreed an in-principle agreement with the United Kingdom.

Polling commissioned by CANZUK International in September 2021 also revealed strong support amongst Canadians and Britons for implementing free movement and foreign policy cooperation between the four CANZUK countries, indicating a strong mandate for the government of Canada to pursue CANZUK proposals as part of an upcoming trade agreement.

CANZUK International will work with MPs and Ministers from both countries to ensure a comprehensive trade agreement is supportive of CANZUK and complimentary to the freer movement of citizens and free trade between the two nations.