The UK has suspended trade talks with Canada after a disagreement over beef and cheese, marking the first time the UK has formally halted negotiations with a trade partner since leaving the EU trading regime in 2021. The trade between the two countries currently operates under the terms of a deal that the UK carried over from its time as an EU member. However, talks about extending this deal have broken down, resulting in the suspension of trade talks.
The dispute centers around two main issues: higher tariffs on British cars and cheese in the Canadian market and the ban on hormone-treated beef in the UK. Higher Canadian tariffs on British cheese came into effect earlier this month after the previous terms expired at the end of 2023. This has already impacted British cheese producers. Additionally, British car companies now face the prospect of higher tariffs to sell into the Canadian market from April.
The talks between the UK and Canada on reaching a bespoke agreement have been ongoing since March 2022. Canada’s government has been under pressure from domestic cheese producers and has been pushing for the UK to relax its ban on hormone-treated beef, which Canadian producers argue effectively shuts them out of the British market.
Canada’s trade minister, Mary Ng, expressed disappointment at the pause in talks and communicated this to UK Business Secretary Kemi Badenoch. Ng emphasized the need for a mutual agreement that benefits both Canada and the UK. The UK government, on the other hand, stated that it reserves the right to pause negotiations if progress is not being made and remains open to restarting talks in the future.
The suspension of trade talks means that the UK’s trading terms with Canada will now be worse than when it was part of the EU’s deal with the country. The total goods trade between the two countries was worth £19.2 billion in 2020, with UK imports from Canada valued at £7.3 billion and UK exports to Canada valued at £11.8 billion.
The decision to suspend trade talks has received mixed reactions. Minette Batters, president of the National Farmers’ Union of England and Wales, expressed relief for farmers and commended the government for taking a strong stance. She argued that the UK had already damaged its economy and agricultural sector by fully liberalizing trade deals with Australia and New Zealand, and it was important to prioritize the interests of British farmers and workers.
The future of trade relations between the UK and Canada remains uncertain. The UK government has indicated that it is willing to listen if Canada comes back to the table with a serious offer and a desire to make progress. Both countries have a long-standing trading relationship, and it is hoped that negotiations can resume in the future to build a stronger trading relationship.
In conclusion, the suspension of trade talks between the UK and Canada over a beef and cheese dispute has highlighted the challenges and complexities of post-Brexit trade negotiations. The disagreement over tariffs and market access barriers has led to a pause in negotiations, impacting both British car companies and cheese producers. The decision to suspend talks has received mixed reactions, with some expressing relief for farmers while others emphasize the need for a mutually beneficial agreement. The future of trade relations between the UK and Canada remains uncertain, but both countries have expressed openness to restarting talks in the future.
