The Canada-UK Free Trade Agreement (CUFTA) is paving the way for a new era of economic cooperation between two powerful trading partners. Signed by Prime Minister Justin Trudeau and former British Prime Minister Theresa May in November 2018, CUFTA aims to maintain market access between the two countries after Brexit.
The deal is set to come into effect on January 1, 2021, following the UK`s formal exit from the European Union. The agreement is designed to replicate the existing EU-Canada Comprehensive Economic and Trade Agreement (CETA), which has been hailed as a landmark deal in global trade.
One of the key benefits of CUFTA is the elimination of tariffs on 98% of goods traded between Canada and the UK. This means that Canadian businesses will have greater access to the UK market, while British exporters will have similar access to Canadian markets. The deal also improves access to services for businesses looking to expand overseas.
The agreement is expected to provide a significant boost to the Canadian economy, with estimates suggesting that it could add up to $1.2 billion to the Canadian GDP over the next decade. Similarly, the UK is expected to benefit from increased trade and investment, particularly in sectors like aviation, pharmaceuticals, and information technology.
The deal also provides better protection for intellectual property rights and ensures that Canadian and British businesses will be able to bid for government procurement contracts in each other`s countries.
In addition, CUFTA contains provisions on labor standards, the environment, and sustainable development, ensuring that economic growth is balanced with social and environmental considerations.
Overall, the Canada-UK Free Trade Agreement is a significant step forward for both countries, providing a framework for increased trade and investment, and boosting the economies of both nations. As the world continues to shift towards more open and cooperative trade, agreements like these will play an increasingly important role in promoting economic growth and global prosperity.