Canada an UK adopt temporary measures to implement transitioanl trade agreement

December 22, 2020

The House of Commons adjourned for the holidays before approving Bill C-18 to implement the Canada-UK Trade Continuity Agreement (CUKTCA).

The Government of Canada has therefore issued the United Kingdom Trade Continuity Remission Order, 2021 #20-1135.

The Remission Order provides the tariff benefits of the Canada-United Kingdom Trade Continuity Agreement (CUKTCA) as if it were in force as of January 1, 2021.

It does so by remitting the difference between the Most-Favoured-Nation Tariff rate of customs duty and the rate of customs duty that would apply under the Comprehensive Economic and Trade Agreement (CETA). This replicates the tariff benefits that would have applied to eligible imports from the United Kingdom (UK) and certain associated territories under the CUKTCA as the tariffs and rules of origin are equivalent under the two agreements. The CETA is referenced because those preferential tariffs and rules of origin already exist in domestic law.

This remission applies to goods imported on or after January 1, 2021, until the day on which the CUKTCA enters into force.

The United Kingdom has agreed to provide reciprocal tariff benefits for eligible Canadian exports to the United Kingdom.

Links:

- Customs Notice 20-39 Implementation of the United Kingdom Trade Continuity Remission Order, 2021

- Customs Notice 20-38 Withdrawal of Entitlement to the CanadaEuropean Union Tariff (CEUT) Tariff Treatment for Goods Originating From the United Kingdom