As the UK Brexit from CETA deadline of December 31st, 2020 draws near, Global Affairs has advised, at this time, Canada and the U.K. continue to engage in discussions about our post-transition relationship, and we are both seeking to avoid disruptions for business when the transition period ends December 31, 2020.
Although Canada is making every effort to mitigate the effect of Brexit on our bilateral trade relationship, the U.K. decision to leave the EU and the CETA – and ongoing uncertainty – may mean a return to MFN trade between us until a new bilateral FTA can be put in place.
In the event where Canada would revert to MFN applied duties on goods imports from the U.K., the applicable tariff treatment would be determined based on the date of import (i.e. release as opposed to accounting), rather than the date the goods are shipped from the U.K. That said, there may be provisions that allow goods in transit to benefit from CETA preferential tariff treatment.