The important trading relationship between Canada and the United Kingdom was secured with the passage of legislation to implement a new trade agreement.

The Canada-U.K. Trade Continuity Agreement substantively replicates the main benefits of the Canada-European Union Comprehensive Economic Trade Agreement to ensure predictability and stability for Canadians as the U.K. exits the European Union.

“This bill is good for Canada. It will work for Canadian businesses and workers, and it fully protects Canada’s supply-management industries,” said Senator Peter Harder, sponsor of the bill in the Senate.

“As Canada seeks to recover from the economic effects of the COVID-19 pandemic, we can ill afford to lose preferential arrangements with our largest and most established trading partner in Europe.”

The U.K. is Canada’s fifth largest trading partner, with two-way merchandise trade amounting to $29 billion in 2019. The U.K. is also Canada’s fourth largest source of direct foreign investment, valued at $62.3 billion in 2019.

“At a time of significant economic uncertainty, we need to leave no stone unturned for Canadian businesses to find stability and grow our economy. Trade agreements are a way for governments to support growth at a minimal cost to the public purse,” Senator Harder said.

The legislation was adopted in the Senate on March 16.