Brokerage Sales: 1‑800‑754‑1918   Brokerage Service: 1‑866‑535‑1918   Logistics: 1‑866‑945‑5378

Brexit – Summary information for Canadian companies – CETA

Brexit – Summary information for Canadian companies

If a Withdrawal Agreement between the UK and the EU is approved, there is likely to be a transition period to December 31, 2020, and possibly beyond, during which the UK would be treated largely as if it were an EU member state. This arrangement could be extended by up to two years if the EU and UK agree. During a transition period, the UK could also be part of the international treaties that the EU has with third countries, such as the Comprehensive Economic and Trade Agreement (CETA) with Canada.

Depending on the details of the transition, Canada would consent to the UK remaining party to CETA and all other Canada-EU agreements.  After the transition, the UK and Canada would need a bilateral agreement to maintain preferential trade, depending on the UK’s future relationship with the EU.

If the UK leaves the EU without an agreement, the UK would no longer be bound by the EU’s treaties with third countries, including CETA. In this scenario, Canada-UK bilateral trade would no longer benefit from any CETA preferences and would be based on WTO rules, including MFN tariffs on goods.

Canadian business should note that the UK recently released a proposed tariff schedule that would eliminate import duties on nearly 95% of its tariff lines in the event it leaves the EU without a deal. This would be offered on an MFN basis to all WTO members for up to one year. Canadian business should also refer to notifications issued by the UK concerning technical certifications that would apply in a no-deal scenario.

Once the UK departs the EU and gains jurisdiction to negotiate trade agreements – and there is more clarity on the UK’s trade arrangements – Canada intends to re-engage with the UK to discuss how our bilateral trade relationship can be strengthened. Any future trade arrangement between Canada and the UK would be influenced by the terms of withdrawal agreed between the UK and the EU, as well as any unilateral UK approaches.

Willson logo header

COVID-19 is a global challenge. Keeping our supply chains moving is important for maintaining the health and wellbeing of citizens and businesses. While the Canada - U.S. border is now closed to non-essential traffic, it is still open for trade and commerce. We are committed to doing our part for global supply chains.

We are protecting the health and safety of our employees. They are working from home, except for critical functions that require certain equipment or managing paper/courier flow. In those cases we are following social distancing guidelines.

We are open and available to assist you, and key players in your supply chains. Our dedicated staff are available 24/7 and our brokerage and logistics experts are available to help you make adjustments to your supply chain, if necessary.

We encourage you to check out the government programs available to families, businesses, exporters and importers. And, while respecting the need for social distancing we encourage everyone, including our staff, to reach out and remain connected to family, friends, colleagues and customers.

Stay safe.

Peter Willson
Chairman & CEO
Willson International

Have a question about Customs? 1-866-535-1918 Logistics? 1-866-945-5378

Stay Connected. Stay Positive. Stay Informed.