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The UK and Canada have agreed a deal to continue trading under the same terms as the current EU agreement after the Brexit transition period ends.

The government said it paved the way for negotiations to begin next year on a new comprehensive deal with Canada.

The PM and Canadian PM Justin Trudeau made the “agreement in principle” in a video call, the Department for International Trade said.

The agreement does not give any new benefits to businesses.

But it rolls over the Comprehensive Economic and Trade Agreement reached by the EU and Canada after seven years of negotiations.