Canada is an important market for the UK and a stepping stone for exporters looking to branch into the Americas without some of the challenges represented by the US market, although the UK and EU FTAs with Canada do not facilitate goods to pass through Canada into the US.

UK-Canada Continuity Free Trade Agreement

• Official name: Continuity (Comprehensive Economic and Trade Agreement (CETA)
• Parties/territories: The United Kingdom and Canada
• Date of entry into force: Expected 01.01.2021 (will be applied provisionally even if not formally passed into legislation in the UK and/or Canada)

This was one of the UK Fashion & Textile Association (UKFT)’s key FTA targets post-Brexit. This is not a full Free Trade Agreement but a “Continuity Rollover Agreement” which means that the UK and Canada will agree to rollover the existing EU-Canada CETA FTA and make it suitable for the UK to use even after the UK has left the EU Single Market and Customs Union. This is intended as temporary protection for the existing commercial arrangements which currently exist between the UK and Canada while a new FTA is being negotiated. The word “Continuity” here refers to the fact that the UK already currently enjoys a FTA arrangement with Canada via the EU-Canada CETA FTA and that this relationship will effectively continue from 1st January 2021. The UK Government fully intends also to negotiate a fuller and more ambitious FTA with Canada in 2021.

UKFT welcomes the signing of this UK-Canada Continuity CEPA FTA and has been working closely with HMG behind the scenes to ensure that the deal works for British companies. In particular, UKFT has been campaigning for any deal to include goods manufactured in the UK but also the EU.

UKFT has created a guide to give a basic overview of this new agreement, including details on:

• Duty arrangements under the FTA from start

• If not 0% at start, what other arrangements are expected

• F&T HCC categories included on a duty free basis

• F&T HCC categories which will still attract duty/quota

• Other restrictions

• Rules of Origin (ROI) requirements to qualify for the FTA

• Mechanism for exporters to register/demonstrate ROI compliance

• VAT required on import/export at the border

• Labelling requirements for goods in target country

• Certifications required

• Standards and requirements

• Intellectual property issues

• GDPR issues

• Special advice for companies selling B2C online

• Other issues

• How does this FTA replicate/differ from previous FTAs the UK enjoyed as a member of the EU single market up to 31^st December 2020

The information set out in this guide provides a basic overview, however, UKFT has much more information and experience of how this market works.

Members can download the guide here

For more information on how to export your products to Canada and to join UKFT, read more here or contact us at info@ukft.org