Updates to the Canada-UK Trade Continuity Agreement

Trade Update • March 26, 2024

he Canada-United Kingdom Trade Continuity Agreement (CUKTCA) has been a cornerstone of trade relations between the two nations, ensuring a smooth transition of goods and services across borders. However, it’s essential for businesses and trade partners to stay informed about upcoming changes to the agreement, particularly concerning rules of origin provisions.

Expiry of Specific Provisions

The CUKTCA has specific rules of origin provisions that are set to expire soon. These include Origin Quotas and the cumulation of origin provisions related to materials and production in the European Union (EU). These provisions are outlined in Annex 5-A and paragraphs 2A, 2B, and 2C of the Protocol on Rules of Origin and Origin Procedures. As of April 1, 2024, the benefits of Origin Quotas and EU materials and production cumulation will no longer be available, marking three years since the CUKTCA’s inception.

What This Means for Businesses

From April 1, 2024, the Canada Border Services Agency (CBSA) will administer the CUKTCA’s rules of origin without these specific provisions. This change may affect the import and export of certain goods between Canada and the UK, including processed agricultural products, textiles, apparel, and vehicles. The Origin Quotas currently allow for preferential tariffs for certain volumes of goods based on specific rules of origin, but this will cease with the provision’s expiry.

The Importance of Cumulation of Origin

Cumulation of origin is a crucial concept in trade agreements, allowing for the consideration of EU materials and production as originating when determining if goods qualify under the CUKTCA. This provision’s expiry might impact how goods produced in Canada or the UK are classified and, consequently, how tariffs are applied.

Preparing for Change

For businesses and trade partners affected by these changes, it’s crucial to prepare ahead of time. Global Affairs Canada is available for inquiries regarding the expiry of these origin quotas through their designated mailbox: Origin.Quotas-Contingents.Origine@international.gc.ca. Additionally, it’s recommended to consult Customs Notices 21-07 and 21-08 for more detailed information on the implementation of the CUKTCA and related regulatory amendments.

Additional Resources

For more information on other CBSA programs and services, the Border Information Service (BIS) can be contacted toll-free within Canada and the United States at 1-800-461-9999, or internationally with applicable charges at 1-204-983-3550 or 1-506-636-5064. Online inquiries can also be directed to the CBSA website’s Contact Us page, or through their online form here.

For questions or concerns about if your products are affected please contact us.