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UK Suspends Trade Talks with Canada Due to Ban on Hormone-Treated Beef

Trade between the two nations operates under an existing agreement inherited by the UK from its EU membership. Initially, a time-limited arrangement facilitated the sale of cars and cheese without hefty import tariffs. However, discussions regarding an extension as part of a fresh agreement have collapsed. Consequently, the UK’s trade terms with Canada will deteriorate, surpassing those under the previous EU deal. This suspension also signifies the first instance of the UK formally halting trade negotiations with a partner since departing from the EU trading regime in 2021.

British car manufacturers are now confronted with the looming possibility of increased tariffs, or import charges, when selling their products in the Canadian market starting April. Earlier this month, elevated Canadian tariffs, reaching up to 245% on British cheese, came into effect following the expiration of previous terms at the end of 2023. Since March 2022, discussions between the two nations aimed at forging a tailored agreement have been ongoing. The Canadian government has been under pressure from its domestic cheese producers and has advocated for the UK to ease restrictions on hormone-treated beef, claiming that the current ban effectively bars them from accessing the British market. A spokesperson for the UK government emphasized the country’s prerogative 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,” they added.

“We remain open to restarting talks with Canada in the future to build a stronger trading relationship”.

In 2020, the total goods trade between the two nations amounted to £19.2 billion, as reported by the UK government. UK imports from Canada accounted for £7.3 billion, while UK exports to Canada totaled £11.8 billion.