Trade Continuity Deal with Canada (UK)

The EU has a free trade deal with Canada. The deal is not rolled over.

The UK did sign a continuity trade agreement (TCA) with Canada. But the TCA did not come into force on 1 January 2021. To minimise the impact of this, the UK and Canada signed a Memorandum of Understanding (MoU).

Information on changes to certain aspects of trade that apply from 1 January 2021 until the UK-Canada agreement takes effect is here.

The MoU covers provisions on:

• preferential tariffs

• tariff rate quotas

• rules of origin

• technical barriers to trade particularly in the areas of pharmaceuticals and telecommunications

As in the UK-EU FTA, there is no equivalence on standards, goods sold into the Canadian market must the regulatory requirements as set out in Canadian law, and be labelled correctly.

For rules of origin (which are tripping up GB goods movement to the EU and Northern Ireland), please check with BEIS. But simply re-packaging or re-labeling a product from the EU and exporting it to Canada as a good originating in the UK is not permitted. Also, check with BEIS re the customs processes for an EU good dispatched to Canada from a GB distribution centre.

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