Canada and Britain have agreed not to raise tariffs on each other’s goods when the United Kingdom leaves the European Union at the end of December.
After “Brexit,” Canada/U.K. trade won’t be covered by the free-trade treaty that Canada has with the European Union (EU). The two countries have a deal to keep current trade terms in place, but Canada’s Parliament hasn’t passed the legislation needed to implement it.
Without that agreement in force, Britain would automatically impose tariffs on Canadian exports, including maple syrup, lobster, beef and automotive parts.
However, the Canadian and British governments said in a joint statement that the two countries have signed a memorandum of understanding (MOU) to head off any tariffs even with neither the existing European Union treaty or the new Canadian-British treaty in effect.
Canada and the United Kingdom conduct $29 billion in trade each year and Britain is Canada’s third largest export market.