British businesses are set to benefit from a landmark trade agreement signed between the EU and Canada today. 

The deal will eliminate import taxes on almost all goods and services and make it easier for vehicle manufacturers to export to Canada. 

The prime minister, David Cameron, said the deal would inject £1.3bn into the economy and help boost exports to Canada by a third. 

He 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.”

He added that he hoped to create a similar deal with the United States. Such a deal has been in the pipeline for a while but second-round talks were stalled this month following the US government shutdown. 

Katja Hall, CBI chief policy director, said: “Major free trade deals are the foundation of the UK’s future growth and jobs, so to seal a deal with Canada is a big step forward.

“We now need to build momentum and agree an EU-US trade deal that will add billions to economies on both sides of the Atlantic.”

Trade and investment Minister Lord Green said: “The deal between the UK 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 the UK in the long term and will help support businesses and investment on both sides.”

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