The UK and Canada have both formally ratified a continuation free trade agreement that ensures the two countries can continue to trade tariff-free post-Brexit.

A Memorandum of Understanding had already been signed in December to roll over the terms of the existing Canada-EU deal once the UK left the bloc, but the official approval for the deal provides greater certainty to businesses that trade should not be disrupted while the parties work on a more permanent solution.

As part of the interim deal, 98 percent of Canadian products will continue to be exported to the UK tariff-free, while importers will save an estimated £42 million (CA$72.64 million) in duties on UK exports, including through eventual zero tariffs on cars, beef, fish, chocolate bars and soft drinks.

The UK is Canada's second-largest services trading partner, with the value of bilateral trade in services amounting to over CA$14.5 billion, of which Canadian exports account for almost CA$7.1 billion.

Both countries are now undertaking the necessary steps to ensure the agreement can be fully implemented from April 1st.

UK international trade secretary Liz Truss said there is an "exciting year ahead" for Canada-UK relations, as the countries work to advance shared goals for free and fair trade.

She added: "Later this year, we will take our trading relationship to new heights by starting negotiations on a new trade deal that will help us set the bar for 21st century trade, bringing jobs opportunity and prosperity for our people."

The agreement was also welcomed by Ms Truss' Canadian counterpart Mary Ng, who noted the two countries share a "unique and historic relationship". She added: "The Canada-UK Trade Continuity Agreement marks a new chapter in Canada-UK relations and provides stability for businesses and workers in both of our countries."