A senior government official has said that Justin Trudeau’s government expects to take stop cap regulatory action to prevent the imposition of tariffs on UK products, as the Canadian parliament waits to approve a new trade agreement with the European country.
Britain and Canada announced in November an interim trade agreement to offset bilateral trade worth more than C $ 29 billion ($ 22.7 billion). The agreement will adopt the same terms of the EU-Canada Free Trade Agreement, although Canadian lawmakers woke up to a holiday on Friday.
The option available to the Government of Canada is called the Relief Order, and the Canadian official was asked not to have the authority to speak publicly about the plans and to remain anonymous. This will allow Canada to exempt any goods or services set out for duty free trade under the new agreement.
The UK government said on Thursday that if the post-Brexit deal with Canada could not be finalized by the end of the year, exports from both countries would be forced to trade under rules set by the World Trade Organization. Without the new agreement, Brexit will face charges for trade in the UK and Canada from January 1, when the transition period ends.
Canadian Commerce Minister Mary NG introduced the bill in the legislature on Wednesday, which was debated by lawmakers for only two days.
“We are working hard to ensure a smooth transition and Canadian businesses are not facing any setbacks,” NG spokeswoman Yumi Hahn said in an email.
The House of Commons sits again on January 25th.