Canada and Britain announced ratification of a new trade treaty Friday that officials say will benefit both countries.
The deal is especially welcome during the pandemic, said Mary Ng, Canada’s minister of small business, export promotion and international trade.
“Canada and the United Kingdom share a unique, and historic relationship. As we continue to address the pandemic, and look ahead, international trade will be essential to ensuring a strong, inclusive recovery that generates growth and creates good jobs and prosperity for Canadians,” Ng said.
“The Canada-UK Trade Continuity Agreement marks a new chapter in Canada-UK relations and provides stability for businesses and workers in both of our countries.”
The UK is Canada’s second largest services trading partner that amounts to more than $14.5 billion annually.
Trade has been covered by a memorandum of understanding that allows preferential treatment of tariffs between the two countries.
But Ng said the trade deal signals a step forward.
Under the terms, Canadian exporters and businesses will continue to receive “preferential access to the UK market and 98 percent of Canadian products will continue to be exported to the UK tariff-free,” Canadian officials explained in a statement.
The deal comes as the UK, which left the EU as of Jan. 31, 2020, negotiates new trade agreements.