UK and Canada strengthen trade partnerships following Brexit

  •   23/11/2020 - 12h43
  •   DEHOUI Lionel

Ottawa and London on Saturday strengthened their business partnerships by signing a "business continuity" agreement toensure mutual access of goods and services between the two states after the split with the European Union. Trade between the two countries is estimated to be worth £20 billion , or around €22.5 billion. Recognising the importance of this trade relationship for both countries, both countries intend to deepen their trade. And to achieve this, they have scheduled talks, once the divorce consummated with Brussels, to put in place a more detailed agreement.

UK and Canada strengthen trade partnerships following Brexit

Why does London need to enter into more business partnerships?

In view of the difficulties in finding common ground with the European Commission on an agreed exit from the regional organisation, the UK government has undertaken several trade negotiations with a number of countries. The country's obsession to find new outlets for its products is aimed in particular at avoiding a trade status quo that would have economic consequences when the divorce takes effect. In spite of the vote which acknowledges the country's exit from the organisation, it remains subject to European laws during the transition period which ends on 31 December next. The partnership agreement will cover several sectors including digital, environment and women's economic empowerment. Recent government data shows that London has commercial contracts with around 50 countries, totalling £164 billion.

 

Trade and Economic Relations between the United Kingdom and Canada

The United Kingdom is Canada's largest trading partner in Europe. It ranks 5th in the world behind the United States, China and Mexico. In 2019, two-way trade is estimated at $29.04 billion.

For Canada, the United Kingdom is more than a major trading partner. It is now estimated that there are more than 700 British companies operating in Canada. They are contributing to Canada's economic growth.

When the roles are reversed, the U.K. is the second largest investor in the world for Canadians. In this regard, statistics show that just over 1,100 companies in the U.K. are owned or controlled by Canadian capital.

 

Areas of cooperation between the two states

They have good relations in several fields and disciplines such as science, technology and education (universities and researchers) as well as innovation. And to meet the technological challenges of the 21st century, they reach out to each other, collaborating on interdisciplinary programs that address societal and global economic issues.

These include issues related to population ageing, climate change, science and green energy, as well as food security and development assistance to poor countries. In particular, they collaborate in the fields of medical research, aerospace, ocean technologies, nanotechnology and security through the transatlantic alliance.