Trade talks between Canada and the UK have been suspended as British cheese import tariffs soar and Canadian Ministers advocate for hormone-treated beef to be exported to the UK.
The UK and Canada have been working to agree on a new trade deal since March 2022, with the previous deal allowing the UK to sell cheese and cars to Canada without import tax. In 2024, Canada imposed higher tariffs of 245% on British cheeses if they fell outside of the existing quota for non-EU imports. A similar tariff is faced by British car companies commencing April 2024.
After Canada rejected the UK’s proposal of tax-free cheese exports at the end of 2023, the UK has now suspended talks with Canada as the UK insisted on retaining restrictions on its agricultural products. The relaxation of the UK ban on hormone-treated beef would allow Canada to increase exports to the UK, as Canadian restrictions are more lenient on the use of hormones in beef production.
According to the UK Government, total trade between the two countries was worth £19.2 billion in 2020. UK imports from Canada were worth £7.3 billion, while UK exports to Canada were worth £11.8 billion.
Canadian Trade Minister Mary Ng said in a statement on ‘X’ (formerly Twitter) that the Canadian Government “will never agree to a deal that isn’t good for our workers, farmers and businesses”.
Ng’s told BBC journalists said she was “disappointed” in the suspension, saying: “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 UK is along-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.”
“We have always said we will only negotiate trade deals that deliver for the British people,” said a spokeswoman for the UK Government She emphasised that the UK had a “right to pause negotiations with any country if progress is not being made”.
“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.”
Minette Batters, president of the National Farmers’ Union (NFU), told BBC Radio 4 that she was “pleased the Government has stuck to its line and not given way.
“We have already damaged our economy and agricultural sector by fully liberalising on trade deals with Australia and New Zealand. We had to take a strong line on this.”
