British Prime Minister Boris Johnson answers questions during a media conference at an EU summit in Brussels, Thursday, Oct. 17, 2019. Britain and the European Union reached a new tentative Brexit deal on Thursday, hoping to finally escape the acrimony, divisions and frustration of their three-year divorce battle. (AP Photo/Francisco Seco)

Canadian business needs Brexit certainty but Johnson plan only a start: observers

The outcome of the unusual weekend vote in London is itself far from predictable

Experts warn that a post-Brexit United Kingdom will present Canadian business with tremendous uncertainty about billions of dollars worth of trade and investments, no matter how the British Parliament votes on Saturday.

The outcome of the unusual weekend vote in London is itself far from predictable, as British Prime Minister Boris Johnson struggles to get support for a controversial agreement that he reached Thursday with the European Union.

But observers say even a Johnson success would only provide a starting point for further rounds of difficult negotiations between London and Brussels and eventually between Canada and the United Kingdom.

Fasken partner Clifford Sosnow says the primary benefit of Johnson’s plan is that it would provide for 14 months to 36 months of negotiations on a new trade deal for two of Canada’s biggest export and investment markets.

“The major concern for everybody is the instability and the instability from not knowing what the business relationship will be, what the investment relationship will be,” says Sosnow, who provides strategic advice about international trade and investments at one of Canada’s largest business law firms.

He adds that open talks between the United Kingdom and Canada would be allowed only after the U.K. leaves the European Union on Oct. 31, if Johnson’s schedule is passed by the British House of Commons.

ALSO READ: Brexit hard-liner Boris Johnson wins race to become UK’s next prime minister

The United Kingdom by itself, represents one of Canada’s top five destinations for investments and top 10 markets for goods and services.

It has also been a gateway for Canadian companies that do business in the European Union, which is Canada’s second- or third-biggest trading partner after the United States and China, depending on the measure.

About 40 per cent of Canadian trade in merchandise with the EU goes through United Kingdom, says Achim Hurrelmann, a political scientist and co-director of Carleton University’s Centre for European Studies in Ottawa.

Without a good free-trade deal between Brussels and London, companies may reconsider “whether they want to stay in the United Kingdom or … go to Dublin (Ireland), or to France or to Germany or the Netherlands.”

“To some extent, that has already happened but my impression is that most companies have been staying put and observing and waiting (to see) what is happening,” Hurrelmann says.

He says that Johnson’s proposed deal would provide more time to sort out the U.K.’s trade relationship with the EU but also with Canada.

“Canada wants to have a trade deal with the U.K. and the U.K. wants to have one with Canada as well,” Hurrelmann says.

“But the question, of course, is will we have time to actually work that out properly or will that have to be very rushed after a no-deal Brexit.”

Mark Camilleri, a Brussels-based Canadian at the Canada EU Trade and Investment Association, says he thinks it’s fair to say “that having any deal is better than having no deal” if only to reduce uncertainty.

He says that having no U.K.-EU. deal “it would potentially be very destabilizing for businesses, including Canadian businesses that are not just based in the U.K. but also based in the EU that are trading to the U.K.”

But Camilleri noted the British Parliament has rejected Theresa May’s proposals on three occasions so ’one has to hold one’s breath as to whether or not (Johnson’s deal) will get through.”

David Paddon, The Canadian Press

Like us on Facebook and follow us on Twitter.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

‘Let’s Read Together!’ during Campbell River Family Literacy Week 2020

Next week’s plethora of free events culmitate with Inuk storyteller Michael Kusugak at Tidemark

How are you enjoying the snow, Campbell River?

We’re looking for your photos and/or video of what you’re getting up to in the snow today!

Ferry cancellations for Thursday, Jan. 16

We will continue to update this page as more information becomes available

Campbell River schools closed Thursday

SD72 takes unusual step of making announcement Wednesday night

Winter storm warning now in effect for Island’s east coast

Environment Canada issues new weather warning late Wednesday afternoon

Fashion Fridays: Look your best this year

Kim XO, helps to keep you looking good on Fashion Fridays on the Black Press Media Network

Oil and gas industry applauds Supreme Court’s dismissal of B.C. TMX case

The high court’s ruling Thursday removes one of the remaining obstacles for the project

Airliner crash a mistake that pleased Iran’s enemies: Supreme Leader Khamenei

Iran’s supreme leader says dowining of Flight 752 was a bitter accident in rare sermon

Sub-zero B.C. weather freezes clothing in just 45 minutes

A local photographer decided to have some fun with the frosty weather before its gone

Special prosecutor to review Cranbrook toddler drowning case

Evidence disclosure at issue in the case of a woman sentenced for criminal negligence causing death

UPDATE: Supreme Court dismisses B.C.’s appeal in Trans Mountain pipeline case

Judges decide whether B.C.’s power to protect environment can include impeding a federal project

10 B.C. cities break temperature records in winter storm

Quesnel dipped to -41.9 C, breaking a record from 1916

Vancouver Island child struck, pinned under SUV while sledding

Boy suffers serious injuries, no charges laid in incident

Most Read