Canada, U.K. begin trade talks as both seek to lessen dependence on bigger neighbours

Canada and the United Kingdom launched formal negotiations on a free-trade agreement, and pledged a relatively swift conclusion, as both countries accelerate efforts to reduce their economic dependence on larger neighbours.

Mary Ng and Anne-Marie Trevelyan will not be starting from scratch. In 2020, their two countries worked out an intermediate arrangement to avoid disruption during Britain's exit from the European Union and the Canada-EU Comprehensive and Economic Trade Agreement.

Our government has made it a priority to focus on a progressive trade agenda that is inclusive and sustainable; an agenda that advances high standards for the environment and for labour; and one that helps our businesses thrive into the future by benefiting from digital trade.

Trudeau and Johnson both want to increase trade with other countries, and Johnson wants to lead a global Britain that is unshackled from the EU. The U.K. is in talks with India about joining the Trans-Pacific Partnership.

He is also on a roll. She has begun formal trade talks with Indonesia and the Association of Southeast Asian Nations in the past year. She re-launched her negotiations with India earlier this month, after observers said they had lost their steam.

The Trudeau government is doubling down on its trade strategy. Adam Taylor, who advised former prime minister StephenHarper on trade policy, said that gummed up supply chains is pushing Ng and her team to find alternative trade channels for Canada.

Canada's second largest trading partner, China, has soured since the arrest and release of a senior executive of a Chinese company. Trade with the U.S. has become uncertain. The relationship was strained by Donald Trump's revocation of the North American Free Trade Agreement. The U.S. is Canada's largest trading partner with close to 70 per cent of two-way trade crossing the border.

There is a lot of risk there and we need to take it seriously.

They will try to conclude negotiations within two years. Carlo Dade, director of trade and investment at Canada West Foundation, said that talks between two long-time trading partners should be easy.

You aren't getting bonus points for doing that because it's expected.

Dade said that there will be sensitivities and irritants around dairy. The federal government and lobbyists protect the Canadian market from the U.K. cheese exporters. He said that it will be an easy deal for the two trading partners.

Email: bbharti@postmedia.com