Busted! Why Canada, Britain Signed Interim Deal

By Ogechi Okorie

Abuja (Precise Post) – The main reason why Canada and signed a temporary was to avoid an increase in tariffs between the two countries after the British exit from the in early 2021, Ottawa said Tuesday.

At the end of November, the two countries announced they had concluded a provisional post-Brexit trade that would reflect, as of January 1, the terms of the deal that benefited from as a member state of the EU.

But the could not be ratified before the Canadian went into its winter recess, which would have resulted in an automatic increase in tariffs between the two countries on January 1.

The temporary deal allows tariffs between the two countries to remain at current levels until the new trade deal is passed in , a foreign ministry statement said.

With the interim agreement, the Canadian government “is making sure businesses can easily continue without adding paperwork for businesses and importers,” it said in a statement.

“These measures will ensure stability and certainty on both sides of the Atlantic,” it added.

Bilateral trade with was worth Can$29 billion (18.5 billion euros) in 2019, according to official government figures. is the main market for Canadian exports to Euro.

Source

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