The agreement will see the UK and Canada continue the trade deal struck with the EU with the two countries set to start work on an even more ambitious arrangement early next year. The deal is another major success for international trade secretary after she secured a £15billion trade deal with Japan. The agreement was sealed yesterday with a Zoom conference meeting between Ms Truss, her Canadian counterpart Mary Ng, Boris Johnson and Canadian Prime Minister Justin Trudeau. Ms Truss said: “This agreement underpins £20billion worth of trade and locks in certainty for thousands of jobs. We look forward to striking a more ambitious deal next year with the aim of creating more opportunities for businesses and improving the lives of people across the country.
The deal was sealed yesterday with a Zoom conference
“The UK is bonded by history, culture and transatlantic trade with our friends and allies in Canada and we want to continue to build partnerships around the world that support our shared values of freedom and democracy.”
Ms Ng said: “As we work towards a strong and sustainable global economic recovery, Canada will remain focused on creating and supporting well-paying
middle-class jobs for Canadians.
“This trade continuity agreement between Canada and the United Kingdom assures we maintain our strong and mutually beneficial trade relationship.
“I am looking forward to working with Secretary of State Truss to ensure a smooth transition in Canada-United Kingdom trade relations.”
Mr Johnson said: “This is a fantastic agreement for Britain which secures transatlantic trade with one of our closest allies. British businesses export everything from electric cars to sparkling wine to Canada and today’s deal will ensure that trade goes from strength to strength.
“Our negotiators have been working flat out to secure trade deals for the UK and from next year we have agreed to start work on a new trade deal with Canada that will go even further in meeting the needs of our economy.”
A senior Whitehall source said: “This is further proof that Britain can succeed outside of the EU and more than hold our own. Liz has done a fantastic job, but this is just the start of even greater things to come in 2021.”
Industry groups expressed relief that businesses will not face higher trade tariffs with Canada next month. Mike Cherry, Federation of Small Businesses chairman, said: “There was always a danger that the end of the transition period would mean losing wider international market access that we enjoyed as part of EU membership.
“The fact that this new agreement upholds the small business chapter that was previously in place is very welcome.
“We look forward to such chapters being at the centre of all future UK trade deals.”
Josh Hardie, director-general of the Confederation of British Industry, said it was “great news for businesses” and that the agreement can “lay the foundations for an even deeper trade agreement”.
The announcement came amid signs that the UK and EU could be on the verge of a breakthrough in the Brexit talks with sources saying the two parties are at “a sensitive moment”.
A source close to the UK negotiating team added that there could be a resolution early the week after next.
The quiet optimism has come after intensive talks continued last week in London and are set to go on this week.
The trade deal is another major success for international trade secretary Liz Truss
But the Prime Minister has been warned by many in his party, including MPs who helped sweep the Labour red wall seats, that he must not concede on his election manifesto promise to deliver a “real Brexit deal”.
Tory Brexiteers have become increasingly concerned that the Government will make too great a compromise over British sovereignty to secure a deal with the EU by the end of the year.
More than 100 Tory backbenchers have been briefed by the Centre for Brexit Policy (CBP), an influential cross-party think tank, on how to determine whether the Brexit deal will fulfil their 2019 manifesto commitments and the Leave referendum promise to “take back control”.
Former Conservative Party leader and fellow of the CBP Sir Iain Duncan Smith said: “Boris Johnson’s Government has a very clear Brexit policy, as spelt out in the 2019 Conservative Manifesto.
Alexander Stafford is urging the PM to uphold his manifesto commitments
“It is, to exit the EU customs union, take back control of our laws, our money, control our own trade policy and ensure we are in full control of our fishing waters.
“These negotiations must deliver on that if we are to retain the goodwill of those in the United Kingdom who voted for the Conservative Party.”
Alexander Stafford, who became the first ever Tory MP for Rother Valley in 2019, added: “The country will never forgive the Conservative Party if we do not uphold the manifesto commitments that led to the breaking of the red wall.
“Therefore, it is vital the Brexit deal that Boris brings back to the nation will respect the promises we made before the 2019 election.”