United Kingdom, Canada Announce Start Of Trade Negotiations

On March 24, the governments of the United Kingdom and Canada announced the start of negotiations on a new free trade agreement. The talks aim to strengthen a trading relationship that was worth more than £19 billion in 2020.

Building on the benefits of the UK-Canada Trade Continuity Agreement, the British government said the new agreement will go further than ever before in areas like innovation, digital data, and women’s economic empowerment. The agreement also will aim to enhance cooperation on tackling climate change by promoting green trade and supporting existing commitments, including those in the Paris Agreement, which is a legally binding international treaty on climate change whose goal is to limit global warming to well below two degrees Celsius compared to pre-industrial levels.

The UK is Canada’s third largest trading partner and Canadian demand for imports is projected to grow by 45 percent by 2035.

MSCI’s allies at Canadian Manufacturers and Exporters (CME) praised the news. “These negotiations provide us with a once-in-a-generation opportunity to create a framework that will lead to growth and prosperity for the manufacturing industry and both our economies,” said Dennis Darby, President and CEO of CME. “Manufacturers strongly believe that our negotiators should strive to craft an ambitious agreement that would set the standard for all future trade agreements. If we can do that, I think it will be easier for our companies to use the agreement to grow their businesses and trade.”