Canada, U.K. trade talks break off as Trudeau government won't extend temporary post-Brexit deal

The two blame each other for a lack of progress, with Canada’s dairy-import quotas and the U.K.’s ban on hormone-treated beef and pork being two of the stumbling blocks

Trade between the Canada and the United Kingdom is governed by an interim deal signed after the U.K. left the European Union, which kept in place most trade rules. Photo by Postmedia file

The U.K. has paused talks to strike a free-trade deal with Canada, with each side accusing the other of obstructing progress.

Britain will only negotiate trade deals that “deliver” for its people and reserves the right to pause talks that aren’t moving forward, a government spokesperson said Thursday.

“We remain open to restoring talks with Canada in the future to build a stronger trading relationship that benefits businesses and consumers on both sides of the Atlantic,” read a post published by Susannah Goshko, British High Commissioner to Canada, on X, formerly known as Twitter.

The two countries announced the formal start of negotiations on a new trade deal in 2022, seeking to replace an interim deal put in place following Britain’s departure from the European Union.The U.K. had pushed to extend a temporary arrangement that allowed exports of British cheese to Canada under low tariffs, similar to those enjoyed by European Union members. That deal expired Dec. 31.

The U.K. also wanted Canada to extend country-of-origin rules that allowed the nation to export products that contained parts from the EU. The expiration of the rules at the end of March could drive up the prices of British goods — such as vehicles — in Canada, unless the U.K. changes its supply chains.

The timelines for these measures were clear to both parties and were intended to ensure that the negotiations were prioritized, according to a Canadian government official familiar with the matter. The U.K. didn’t meet those timelines, the person said.

Trade Minister Mary Ng’s office blames “stalled negotiations” on a British “unwillingness” to offer something in return, such as budging on a dispute over Canadian meat.Canada’s cattle sector has been lobbying against a new deal with the U.K. over a long-standing dispute on hormone-treated beef and pork.

The U.K. has said it is unwilling to budge on its policy of banning imports of meats treated with certain hormones that are widely used by Canadian ranchers, who argue the Brits’ concern isn’t grounded in science.

The U.K. government’s decision to maintain market-access barriers for Canada’s agriculture industry and unwillingness to reach a mutual agreement stalled negotiations, said Shanti Cosentino, a spokesperson for Ng.

She said Ng had been in touch with her U.K. counterpart, Trade Secretary Kemi Badenoch, to express Canada’s disappointment.

Ng told reporters in Ottawa that the U.K. is Canada’s third-largest, single-country trading partner at over $46 billion a year.

“I’m disappointed that they have paused these negotiations,” Ng said. “I’m very confident that we will be able to get back to the table, and I would encourage my colleagues in the United Kingdom, let’s get back to the table.”

Agriculture Minister Lawrence MacAulay defended Canada’s dairy-import quotas, which have long been a source of tension with trading partners. The country has controlled dairy supplies for decades, limiting domestic production and applying heavy tariffs to imports, in an effort to stabilize incomes for local farmers.“When it comes down to signing the trade deal, we will sign a trade deal that’s good for Canadian farmers,” MacAulay said. “The supply-management sector is protected in this country, and will be.”

— With additional reporting from Dylan Robertson of The Canadian Press