Order Fixing April 1, 2021 as the Day on Which that Act Comes into Force: SI/2021-14
Canada Gazette, Part II, Volume 155, Number 8
Registration
SI/2021-14 April 14, 2021
CANADA–UNITED KINGDOM TRADE CONTINUITY AGREEMENT IMPLEMENTATION ACT
Order Fixing April 1, 2021 as the Day on Which that Act Comes into Force
P.C. 2021-235 March 26, 2021
His Excellency the Administrator of the Government of Canada in Council, on the recommendation of the Minister for International Trade, pursuant to section 52 of the Canada–United Kingdom Trade Continuity Agreement Implementation Act, chapter 1 of the Statutes of Canada, 2021, fixes April 1, 2021 as the day on which that Act comes into force, other than subsection 9(3), paragraphs 12(1)(a) and 14(a) and section 30.
EXPLANATORY NOTE
(This note is not part of the Order.)
Proposal
This Order fixes April 1, 2021, as the day on which the Canada–United Kingdom Trade Continuity Agreement Implementation Act (the Act) comes into force, other than subsection 9(3), paragraph 12(1)(a), paragraph 14(a) and section 30.
Objective
The objective of this Order is to support the entry into force of the Agreement on Trade Continuity between Canada and the United Kingdom of Great Britain and Northern Ireland (the Agreement).
Upon its entry into force on April 1, 2021, the Agreement will ensure that Canadian businesses continue to enjoy preferential trade with the United Kingdom. Furthermore, the Agreement will remain in place until Canada and the United Kingdom negotiate a new, bespoke free trade agreement that is tailored to the bilateral relationship and interests of both countries.
Background
On December 31, 2020, the United Kingdom left the European Union (EU) Single Market. In doing so, the United Kingdom also ceased to be a Party to the Canada–EU Comprehensive Economic and Trade Agreement (CETA), which has been provisionally applied between Canada and the EU, including the United Kingdom, since September 21, 2017.
To ensure that Canadian businesses will continue to enjoy preferential trade with the United Kingdom, the Government of Canada and the United Kingdom have agreed to a transitional trade agreement, the Agreement on Trade Continuity between Canada and the United Kingdom of Great Britain and Northern Ireland, which replicates CETA and substantially preserves access to its benefits on a bilateral basis with the United Kingdom. The Agreement was signed on December 9, 2020.
The Canada–United Kingdom Trade Continuity Agreement Implementation Act was introduced in Parliament on December 9, 2020, and obtained royal assent on March 17, 2021. The Act contains a number of general provisions that are intended to implement the operational aspects of the Agreement. The Act further amends eight federal acts. Together, these elements of the Act ensure that, upon the entry into force of the Agreement, Canada will be in conformity with its obligations.
Implications
Entry into force of the Agreement will preserve stability and predictability for businesses, exporters, and workers in both Canada and the United Kingdom. It will also maintain Canada's high standards for businesses, workers, and the environment while ensuring the continuity and efficiency of the country's supply-managed products system.
While the Agreement replicates the investor-state dispute resolution mechanisms of CETA, Canada and the United Kingdom have agreed to suspend those provisions, pending a review. As a result, the sections in the Act relating to those provisions have not been brought into force at this time.
Once the Agreement is ratified, the Government of Canada will continue to work closely with the United Kingdom as it develops its independent trade policy, and will seek to negotiate a comprehensive new free trade agreement that is best tailored to the bilateral relationship and interests. To that end, Canada and the United Kingdom have committed in the Agreement to launch subsequent negotiations toward a new comprehensive free trade agreement within a year after the entry into force of the Agreement.
Consultation
A notice was published in the Canada Gazette in July 2018, to inform Canadians of proposed transitional trade agreement negotiations and the Government's efforts to mitigate disruption for business due to the United Kingdom leaving the EU, and thereby preserve CETA-like coverage. As part of the discussions leading to the Agreement, provinces and territories were engaged through regular interactions, including through the Federal-Provincial-Territorial Committee on Trade.
Stakeholders and provinces and territories have indicated their agreement with Canada and the United Kingdom (U.K.) replicating CETA in a Canada-U.K. transitional trade agreement because of its potential for providing continuity, thus reducing the uncertainty arising from the United Kingdom's departure from the EU. They also support Canada and the United Kingdom working toward negotiating a new comprehensive free trade agreement that would be in their longer-term interest.
The Government of Canada launched public consultations on March 12, 2021, seeking the views of Canadians on future trade relations with the United Kingdom, both in regard to subsequent bilateral negotiations and in light of the United Kingdom's application, on February 1, 2021, to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
Contact
Doug Forsyth
Director General
Trade Policy and Negotiations
Market Access
Global Affairs Canada
Telephone: 343‑203‑4414