Paul Seddon, a politics reporter, reported that the UK has put a stop to its trade discussions with Canada, after nearly two years on a post-Brexit agreement. The disagreement arose over beef and cheese. Trade between both countries continues under the terms of a deal the UK rolled over from its time as an EU member. A temporary deal allowed the UK to sell cars and cheese without high import taxes. However, talks about extending these terms as part of a new agreement have now fallen through. This marks the first time the UK has formally suspended trade talks with a partner since leaving the EU trading regime in 2021. The move will result in the UK having worse trading terms with Canada than when it was part of the EU’s agreement with the country. British car companies now face the prospect of higher tariffs to sell into the Canadian market starting in April. In addition, higher Canadian tariffs on British cheese had already taken effect earlier this month, following the expiration of the previous terms at the end of 2023. Negotiations for a bespoke agreement between the two countries have been ongoing since March 2022.
Canada’s government had been under pressure from domestic cheese producers and was also advocating for the UK to relax a ban on hormone-treated beef, which its producers argue effectively prevents them from accessing the British market. A spokesperson for Canada’s trade minister Mary Ng expressed disappointment at the pause in talks and communicated this to UK Business Secretary Kemi Badenoch. The spokesperson remarked that the UK’s decision to maintain barriers to market access for Canada’s agriculture industry and reluctance to reach a mutual agreement have stalled negotiations, emphasizing the need for a deal that benefits both Canada and the UK. The UK government reiterated its commitment to only negotiating trade deals that benefit the British people, expressing openness to revisiting talks with Canada in the future to build a stronger trading relationship. A UK government source added that if Canada returns to the table with a serious offer and a desire to make progress, they are willing to engage. According to the UK government, the total goods trade between the two countries was valued at £19.2 billion in 2020, with UK imports from Canada worth £7.3 billion and UK exports to Canada valued at £11.8 billion. Minette Batters, president of the Nation Farmers’ Union of England and Wales, welcomed the decision, emphasizing the importance of the government’s firm stance. Batters highlighted the damaging effects on the economy and agricultural sector caused by fully liberalizing trade deals with Australia and New Zealand, asserting the necessity of taking a strong position on the matter.
