By Daniel Hunter

A landmark trade deal reached today between the EU and Canada, that will benefit the UK economy and businesses by over £1.3 billion a year, has been welcomed by Prime Minister David Cameron.

The Canadian Prime Minister Stephen Harper and the European Commission confirmed the negotiations had concluded in Brussels today. Businesses in the UK stand to benefit significantly from this as the UK is Canada’s second biggest trading partner in the world, behind the USA. The latest estimates suggest that UK exports to Canada would increase by 29% or £2.3 billion and Canadian exports to the UK would increase by 15%.

Prime Minister David Cameron said: “It’s great news that Prime Minister Harper and President Barroso have concluded this historic trade deal and I want to thank them for their commitment throughout these negotiations.

“Earlier this week, the Business Taskforce called for more free trade deals. Today the EU has delivered its largest free trade agreement ever and proved that it can be an asset for British business. The deal will inject £1.3 billion to the UK economy, boost exports by almost a third and create thousands of new jobs.

“I’ve made it a priority to push for a US-EU trade deal. We must now seize on today’s success and focus our efforts on concluding all the other trade deals on the table. Concluding those would be worth over £20 billion to the UK and help British businesses thrive in the global race.”

Trade and Investment Minister Lord Green said: "The deal between the EU and Canada represents an important step in strengthening our trade and investment relations. As Canada's number one trading partner in the EU, the agreement stands to bring £1.3bn in annual benefit to UK GDP in the long term and will help support businesses and investment on both sides."

Minister of State at the Foreign and Commonwealth Office Hugh Robertson said: “Our relationship with Canada, a member of the Commonwealth, is very important to the UK. I’m delighted that this deal will help us to expand our ties with one of our closest historic friends and allies.”

Industries that will especially benefit from the deal include car manufacturers, the wine and spirits sector, pharmaceutical companies, dairy and poultry farmers. It will also help those looking to win public procurement contracts.

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