Canada-UK Trade Deal: Negotiations Break Down as Both Sides Exchange Blame

Canada and the United Kingdom are exchanging blame over the breaking down of negotiations over a free trade deal.

Britain has suspended talks on the matter with Ottawa amid disagreements about the lack of access to agricultural markets. The negotiations started in March 2022 and are among a number of discussions that Britain has launched worldwide in the wake of its decision to leave the European Union.

Canada-UK Trade Deal Issue

(Photo : Sajjad HUSSAIN / AFP) (SAJJAD HUSSAIN/AFP via Getty Images)
The Canada-UK trade deal negotiations have broken down and both sides are blaming each other for their failure to reach an agreement on the matter.

That particular decision excluded it from existing EU free trade deals. In a statement, a spokeswoman for Canadian Trade Minister Mary Ng said that they were disappointed that negotiations with the UK were being suspended. They added that the decision to continue to maintain market access barriers has stalled the talks.

The spokeswoman added that Ng had contacted British business minister Kemi Badenoch to express Canada's disappointment regarding the development. The situation comes as Canadian farmers are complaining that they have been effectively shut out of the British beef market due to regulations that ban the use of hormones, as per Reuters.

In a social media post on X, formerly known as Twitter, a British government spokesperson said that they reserve the right to pause negotiations with any nation if no progress is being made. Prior to Britain leaving the EU trade sphere at the end of 2020, Canada rolled over existing trade agreements to ensure free trade could continue.

But now, a particular arrangement that dealt with cheese access has expired and a Canadian government official blames Britain for the lack of an extension agreement. The official spoke under the condition of anonymity and said that Britain did not act fast enough during the negotiations and simply expected Ottawa to just give it things.

The two sides have both said that they are ready to resume negotiations. Official British data showed that a total bilateral trade in goods and services was recorded at $32.9 billion in the year that ended June 30, 2023. This was the time when Canada was Britain's 18th largest trading partner.

Failure To Extend Measures

The situation marks the first time that the UK has formally suspended talks with a trade partner following leaving the EU trading regime. The development also means that the UK's trading terms with Canada will now become worse than when it was part of the EU's deal with the nation, according to BBC.

Now, British car companies face the prospect of higher tariffs, or import charges, to sell into the Canadian market from the beginning of April. Higher Canadian tariffs on British cheese already began earlier this month following the expiration of the previous terms at the end of last year.

Agriculture Minister Lawrence MacAulay also defended Canada's dairy import quotas, which have long been known to cause tension with trading partners. The nation has controlled dairy supplies for several decades, limiting domestic production and applying heavy tariffs to imports to stabilize incomes for local farmers.

He noted that when it comes down to signing the trade deal, they will do so if it is good for Canadian farmers. MacAulay argued that the supply-management sector is protected in the country and always will be, said Yahoo News.