The UK has published proposed tariffs that would apply to all goods imported from all WTO Members (i.e., on a most-favoured nation or ‘MFN’ basis) in the event of a “No Deal” Brexit for a period of up to 1 year. Under this proposal, the vast majority of Canadian agriculture exports to the UK would enter duty-free, quota-free, with significantly reduced applied tariffs or duty‑free tariff rate quotas for the remaining products. Additionally, the UK has published information on how it will manage the border between Ireland and Northern Ireland in the event of a “No Deal” Brexit. Given the complicated nature of a “No Deal” Brexit, Canadian firms should be aware that any potential delays at UK ports of entry could affect all traffic passing through.
The Canadian Food Inspection Agency has been working with its UK counterparts on sanitary and phytosanitary certification requirements for agricultural commodities (food, plant and animal products) and organic equivalency to minimize any potential trade disruptions past the Brexit deadline (i.e., when the UK leaves the EU).
Regarding Canadian exports, no impacts are anticipated in either Brexit scenario (“No Deal” or Withdrawal Agreement) as Canada understands that the UK will continue to accept existing EU model health certificates and establishment listings for food, plants and plant products, animals and animal products for at least six months after the Brexit deadline, while the UK determines a longer term approach.
For UK exports to Canada, the UK has provided assurances that all relevant EU legislation, processes and standards will remain in force for at least six months from the Brexit deadline and only minor administrative certificate changes will be required.
With respect to organic products, Canada and the UK have agreed to transition to a UK-Canada reciprocal recognition of equivalence of organics based on the existing EU-Canada recognition, and therefore no disruption in the trade of organic products is expected.