BY CHRISTIAN SIVIÈRE
SUPPLY CHAIN CANADA, ONTARIO INSTITUTE INVITES YOU TO THE “Canada and the UK
LEADERSHIPSERIES
signed a memorandum of understanding in early December, laying the foundations for a trade continuity agreement.”
between the UK and the EU, and goods now have to go through customs and other regulatory clearances. Although this creates complications, delays and extra costs, it’s a boon for customs brokers, as customs declarations are Christian Sivière is now required on both sides. Cuspresident at Solimpex. toms controls and inspections are required for many products, since the UK is no longer bound by EU LEADERSHIP SERIES standards. This applies particularly for food products, with UK exportimport-export controls in both direc- good news. Brexit adds complexiers having to supply health certifities for exporters, since it is no lontions. Northern Ireland must follow cates for many exports to the EU, EU customs rules, with special rules ger efficient to serve all of Europe through a single base. Companies which they didn’t need before, applying for trade, as it remains in doing business in both markets must adding delays and costs. All prodthe EU single market for goods. rethink their distribution strategies ucts of animal origin entering due to the border complications, the EU and Northern Ireland now CANADA’S ROLE Canada and the UK signed a memo- delays and costs. Customs is not the need an EU Export Health Certifionly issue: standards for products cate (EHC). randum of understanding in Decemare now different (CE in the EU and ber, laying the foundations for Like all free trade agreements, SECTOR CHAMPION IN PARTNERSHIP WITH a trade continuity agreement govthe EU-UK TCA PUBLIC contains prodUKCA in the UK), there are two erning Canada-UK trade. It mirrors uct-specific rules of origin and channels for IP protection (UKIPO exporters must provide an origin our CETA Free Trade Agreement and EUIPO), changes with VAT and TITLE PARTNERS COLLABORATIVE PARTNER certification to avoid customs with the EU. Temporary measures challenges on direct shipment rules. duties. The regional value content Companies must now treat these began January 1 to ensure continmarkets separately and establish Brexit, the UK’s departure from the required for most products is 50 per ued preferential tariff treatment for cent of the EXW price. For gasoline goods shipped between the counseparate distribution channels. EU, happened on January 1, after Whether Brexit benefits the tries until a full CUKTCA is agreed several years of uncertainty. With and diesel automobiles, it is 55 per an exit agreement on December 24, cent. For electric and hybrid vehiupon. CBSA issued a remission UK’s economy is an open question 2020 and the UK’s abrupt departure cles, the RVC is 40 per cent, going order so UK products still enjoy tar- but studies, including from the UK days later, there was little time for up to 45 per cent in 2026 while for iff-free entry. UK origin goods are Government, point to a decline in businesses to prepare. The UK left batteries, it is 30 per cent, going up now accounted for in our B3s under GDP. “Frictionless trade” doesn’t to 50 per cent by 2026. Unlike in MFN tariff treatment code 02, the European Single Market, the exist with a border, as it involves with mention of Special Authority customs formalities, processes, EU Customs Union, the Common CETA, there is no mutual recognicontrols, additional steps, delays Agricultural Policy, the Common tion agreement for testing and certi- OIC number 20-1135 in field #26. LEADERSHIP Fishery Policy, EU Laws, SERIES fication, so products have to be The TCA replicates the CETA rules and costs. This was shown at the Regulabeginning of 2021 when UK goods tested and certified in the destinations, Directives and the European of origin and allows for accumulaCourt of Justice. The EU-UK Trade tion country. tion with the EU on a transitional exports fell by £5.3 billion (19.3 Northern Ireland now has special basis for three years: materials per cent) in January, mainly and Cooperation Agreement govbecause of a £5.6 billion (40.7 per erns the new relationship. Until that status and the UK is split in two: sourced from the EU used in procent) fall in exports to the EU. UK agreement, there was uncertainty, Northern Ireland remains in the EU duction of goods in Canada or in with consumers and businesses the UK continue to count as origisingle market while Great Britain imports fell by £8.9 billion (21.6 stockpiling products in the event of (England, Scotland and Wales) are per cent) in January, driven by a nating goods. a “no-deal’’ exit, which would have out. This is to avoid re-introducing It was important for Canada (and £6.6 billion (28.8 per cent) fall in increased costs by re-introducing a hard border between Northern Ire- the UK) to reach a quick, though EU imports. The January 2021 fall land (part of the UK) and the Repubincomplete, agreement as the UK is in UK goods imports and exports MFN tariffs/customs duties on products. ThisADVANTAGE would have been OF OUR lic ofCORPORATE Ireland (a full EUGROUP our first export market in Europe. was the largest monthly fall since member).PRICING TAKE detrimental as UK exports to the records began in 1997. SP The Brexit TCA leaves an open bor- Gold and precious metals represent Member Pricing: $149 der + HST I Non-member $199 +ofHST three quarters our exports to the between Northern Ireland andPricing: EU account for 45 per cent of total SAVE UP TO 50% (Complimentary until April the 30, 2022) Republic of Ireland to preserve UK exports and UKmembership imports from UK and are duty-free anyway. But WITH OUR GROUP PRICING the Good Friday Agreement of the EU represent over half of UK the UK is a major supplier, our third Group Pricing: $99 per1998. attendee for a group (4) or more These provisions, called of the fourone imports. in Europe, after Germany and Northern Ireland Protocol, establish The EU-UK Trade Continuity Italy, and ahead of France. an unofficial “border” between Agreement applies to goods, not Tariff-free access to the EU and FORIt REGISTRATION AND/OR PARTNERSHIP ENQUIRIES Northern Ireland and the UK, with services. re-introduces a border the UK are maintained and that’s
THE NEW NORMAL PUBLIC SECTOR HOW BREXIT June 17, 2021 I Zoom Platform WILL SHAPE THE UK’S TRADE WITH CANADA AND THE EU
HEALTHCARE SECTOR September 30, 2021 I Zoom Platform
Registration: Visit www.supplychaincanada.com/events or contact Alisha Seguin: +1 416.977.7566 x2150 I aseguin@supplychaincanada.com SUPPLYPRO.CA 19 Partnership: Contact Kim Sforza: +1 416.977.7566 x2134 I ksforza@supplychaincanada.com
SP Apr 21.indd 19
2021-04-05 3:21 PM
