Canada’s deal boosted trade but fear of jobs moving abroad
BILLED as the “Gateway to Europe”, Hull’s rejection of the EU in the 2016 referendum came as a surprise.
But as the East Yorkshire city prepares for life after Brexit, the feeling toward the bloc 3,200 miles away in another Hull, in Quebec, could not be more different.
For after Canada brokered the Comprehensive Economic and Trade Agreement with Europe, effective since September last year, business has been booming.
Its success led Boris Johnson and David Davis to urge Theresa May to tell Brussels she will “reset” talks using a CETA-style agreement. But the PM ruled it out over concerns it would lead to a hard Irish border.
Although the country’s model would give us total freedom over immigration policy, we would have limited trading access to the EU market. Most worryingly, it could put jobs at risk and lead to gross domestic product falling by 5%.
HONEYMOON
And while Canada is still enjoying its CETA honeymoon, some fear their deal will end in divorce too.
In Quebec’s Hull, engineering firm boss Alain Brodeur said: “Although many praise the agreement, it is still in its infancy. We have seen imports and exports increase but my fear is it may see jobs being moved overseas, where labour is cheaper.”
Firms have been boosted by the cut of a 7% tariff but CETA has not helped lift the customs barrier.
Despite the agreement, imported and exported goods are subject to the same rigorous checks as any other goods from outside the EU.
Montreal-based PBSC Urban Solutions has worked with the UK before CETA came into effect. In July 2010, it supplied 12,000 Borisbikes in London. Now, the firm is in talks with other UK cities to roll out the bike-sharing scheme elsewhere.
PBSC’s Gian-Carlo Crivello said: “There is no doubt working under CETA and the deal it has provided us with has made dealing with Europe a level playing field. No longer are we subject to a 7% tariff, making us even more competitive.
“CETA has helped us deal with all EU members but we are unsure how Brexit will affect trade with the UK.”