Canada–UK Trade Continuity Act Comes into Force

Summary#

This order sets April 1, 2021 as the day the Canada–United Kingdom Trade Continuity Agreement Implementation Act comes into force, with a few specific parts left out. The Act puts in place Canada’s law to implement the transitional trade deal with the United Kingdom that preserves most of the trade terms previously covered by CETA.

What it does#

• Brings most of the Canada–United Kingdom Trade Continuity Agreement Implementation Act into force on April 1, 2021.
• Does not bring into force: subsection 9(3), paragraphs 12(1)(a) and 14(a), and section 30.
• Implements the Agreement on Trade Continuity between Canada and the United Kingdom of Great Britain and Northern Ireland, which largely replicates CETA on a bilateral basis so trade terms continue after the United Kingdom left the EU.
• Leaves in suspension the investor–state dispute resolution parts of the replicated agreement; those related sections of the Act were the ones not brought into force pending review.

Who's affected#

• Canadian businesses and exporters that trade with the United Kingdom.
• Workers and companies involved in cross‑border supply chains between Canada and the United Kingdom.
• Producers in Canada’s supply‑managed sectors (for example, dairy, poultry and eggs), since the Act aims to preserve continuity in that system.
• Provincial and territorial governments and other stakeholders who were part of consultations.
• It is not always clear from the order which exact groups are affected by the specific subsections left out; those impacts depend on the detailed contents of those provisions.

Why it matters#

• It prevents an immediate gap in trade rules after the United Kingdom stopped being covered by the EU arrangements. That helps businesses avoid sudden changes to tariffs and market access.
• It preserves predictability for exporters, importers and workers who rely on Canada‑UK trade.
• Suspending the investor–state dispute parts means some investor protections that appear in CETA are not active right now. That is important for investors and governments considering future legal options.
• The Agreement is intended as a stopgap while Canada and the United Kingdom plan to negotiate a full new free trade agreement in the future.