United Kingdom (UK) has pulled out of negotiations with Canada for a permanent free trade agreement, post-Brexit. Duty-free treatment for most goods will continue under temporary arrangements, yet several crucial provisions will be lost. For instance, the "origin quotas" will be eliminated as of March 31, 2024.
Origin quotas apply to a small number of apparel products and allow Canadian firms to manufacture apparel using third-country fabrics and still access the UK market duty-free. The product most impacted by this will be Canadian-made winter outerwear. The Canadian Apparel Federation supports a simpler "cut and sew" rule to streamline trade if free trade renegotiations resume.
We originally published a message outlining this change in our February CAF Bulletin newsletter.
At our behest Global Affairs, Canada issued the following statement:
https://www.international.gc.ca/trade-commerce/controls-controles/notices-avis/1109.aspx?lang=eng
Subsequently, Canada Border Services Agency issued the following notice:
https://www.cbsa-asfc.gc.ca/publications/cn-ad/cn24-07-eng.html
For further information about this or other Trade issues contact Bob Kirke at the Canadian, Apparel Federation, bkirke@apparel.ca