By Paul SeddonPolitics reporter
Getty ImagesThe UK has ceased its trade negotiations with Canada, after almost two years discussing a post-Brexit agreement, due to a disagreement regarding beef and cheese trade. The existing trade between the two nations operates under the terms of a deal that the UK preserved from its time as an EU member. However, discussions to extend these terms as part of a new agreement have now collapsed. This means that the UK’s trade conditions with Canada will be less favorable than when it was part of the EU’s agreement with the country. This also marks the first time the UK has formally halted discussions with a trade partner since it left the EU trading regime in 2021. British car companies will now potentially face higher tariffs to sell their products in the Canadian market starting in April. Additionally, higher Canadian tariffs of up to 245% on British cheese came into effect earlier this month, after the previous terms expired at the end of 2023. Talks between the two countries to establish a customized agreement have been ongoing since March 2022. The Canadian government had been under pressure from domestic cheese producers and had been advocating for the UK to ease a ban on hormone-treated beef, which Canadian producers argue effectively excludes them from the British market. A spokesperson for the UK government stated that it retains the right to “pause negotiations with any country if progress is not being made.” The spokesperson added, “We have always said we will only negotiate trade deals that deliver for the British people. We remain open to restarting talks with Canada in the future to build a stronger trading relationship.” A source within the UK government commented, “If Canada comes back to the table with a serious offer and a desire to make progress, we’re all ears.” A spokesperson for Canada’s trade minister Mary Ng expressed disappointment at the pause in discussions and conveyed this to UK Business Secretary Kemi Badenoch. The spokesperson added, “Their decision to continue to maintain market access barriers for our agriculture industry and unwillingness to reach a mutual agreement has only stalled negotiations.” The spokeswoman also said, “The UK is a long-standing trading partner and I am confident that we can negotiate an agreement that is win-win for Canada and for the UK. But let me be clear – we will not negotiate an agreement that is not good for Canadians – and not good for our Canadian businesses, farmers and workers.” Total goods trade between the two countries was worth £19.2bn in 2020, according to the UK government, with UK imports from Canada worth £7.3bn and UK exports to Canada worth £11.8bn. Minette Batters, president of the Nation Farmers’ Union of England and Wales, welcomed the decision as “a relief for farmers.” She stated on BBC Radio 4’s Today program that she was pleased the “government has stuck to its line and not given way.” She added, “We have already damaged our economy and agricultural sector by fully liberalizing trade deals with Australia and New Zealand. We had to take a strong line on this.” The Canadian Cattle Association expressed support for its government’s “hard-line approach” on beef rules, stating that the UK had “shown no indication that it is prepared to fully accept Canada’s food safety system which is widely recognized as one of the finest in the world.”
