Saturday, October 19, 2013

New Export - Import Deal between EU and Canada Welcomed by UK Officials

Estimates of Trade Increase in the Billions
Shipping News Feature

UK – EUROPE – CANADA – Yesterday saw a new trade accord signed between the EU and Canada after a joint study assessed the costs and benefits of a closer export/import cooperation between the two. Such agreements are considered essential to maintain a free flow of international trade and to avoid what the two refer to as ‘points of friction’ and the new deal was welcomed by the UK authorities who estimate its worth to the British economy as in excess of £1.3 billion, and is in line with declared government policy.

The UK is Canada’s second biggest trading partner in the world behind the USA, and the latest government estimates suggest that UK exports to Canada would increase by 29% or £2.3 billion and Canadian exports to the UK would increase by 15%. Overall the deal is expected to generate a benefit to the EU of £7.9 billion with a £5.6 billion gain Canada each year.

Whilst the tendency is to export services from the UK whilst importing actual freight, British exports to Canada in processed foods are expected to ‘rocket’ by almost 500% in the long-run (or £1.3 billion per year). Chemicals (£260 million per year) and machinery (£160 million per year) would also see significant increases in exports.

For Canadians, the beef and pork farmers, pharmaceutical companies, fishing and metals industries will benefit the most and it will also help those looking to win public procurement contracts, and, as the UK is used as a launch pad for many Canadian shipping contracts into mainland Europe, the British government has understandably welcomed the deal with open arms with speeches by Prime Minister David Cameron and both Trade and Investment and Foreign and Commonwealth Office ministers, singing its praises.

Photo: President of the European Commission, José Manuel Barroso and Canadian Prime Minister, Stephen Harper celebrate the new deal.