OTTAWA — Canada says it will continue to work closely with the United Kingdom to protect its relationship with the European country in a post-Brexit world.
The U.K. is expected to officially leave the European Union on Jan. 31, but an 11-month implementation period will take place first, in which existing agreements remain in place while it refines its relationship with the EU and then other countries.
Federal International Trade Minister Mary Ng said that as the U.K. continues to make decisions around Brexit, the government will “continue that work so that there is a seamless transition, you know, between Canada and the U.K.”
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She hesitated to comment on specifics of what a deal could look like or when a deal could potentially be negotiated.
“I think that I’m happy to come back to you and give you progress as we’re making it,” she said.
There are doubts that any new trade deal between the U.K. and Canada will mean much to farmers here, especially when considering the experience of the Comprehensive Economic and Trade Agreement between Canada and the EU.
The EU is the world’s largest importer of agriculture and agri-food products, about 16 percent of the world’s total imports for the sector, but Canada continues to have less than two percent of the market share.
Since taking effect in 2017, the agreement has failed to offer lucrative new markets for Canadian farmers, despite removing almost all bilateral trade tariffs between the EU and Canada.
Largely due to non-tariff trade barriers, agriculture and agri-food exports have actually decreased since CETA came into force as export quotas continue to be left unfilled by Canadian producers.
That is partly why Carlo Dade, director of the Trade and Investment Centre at the Canada West Foundation, sees little potential for Canadian farmers in a trade deal with the U.K.
He said the U.K. will prioritize new trade deals with its larger trading partners and said negotiations with Canada could be “really, really tough.”
“I’m not optimistic that we are going to get a quick agreement unless the U.K. is ready to roll over and hands us a better deal than the EU agreement, with fewer concessions, taking fewer concessions from us in exchange for giving us more concessions,” he said.
He said the key message for agricultural importers and exporters is that change isn’t coming immediately on Jan. 31.
“So there is complete certainty that those commercial relationships will be able to continue at least for the next 11 months. And then during those 11 months, we’re looking at ways that we can begin to seek new opportunities to trade and open up new markets.”
