UK halts trade negotiations with Canada over hormones in beef ban
The United Kingdom has halted its negotiations on trade with Canada, concluding nearly two years of discussions for a post-Brexit agreement, due to a dispute concerning beef and cheese.
Presently, trade between the two nations operates under the terms of an arrangement that the UK retained from its tenure as a member of the European Union.
Through a time-limited agreement, the UK could continue exporting cars and cheese without facing substantial import tariffs. However, efforts to prolong these terms as part of a new agreement have collapsed.
This marks the first instance where the UK has formally suspended trade discussions with a partner since its departure from the EU trading regime in 2021.
Consequently, the UK’s trading conditions with Canada will now be less favorable than when it was part of the EU’s agreement with the country.
British automobile manufacturers now confront the possibility of increased tariffs when selling in the Canadian market beginning in April.
Moreover, elevated Canadian tariffs on British cheese had already taken effect earlier this month, following the expiration of previous terms at the end of 2023.
Negotiations between the two nations for a customized agreement have been ongoing since March 2022.
The Canadian government faced domestic pressure from cheese producers and advocated for the UK to lift its ban on hormone-treated beef, which Canadian producers argue effectively bars them from the British market.
A spokeswoman representing Canada’s trade minister, Mary Ng, expressed disappointment over the pause in discussions and conveyed this sentiment to UK Business Secretary Kemi Badenoch.
“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 spokeswoman added.
“The UK is a long-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”.
A spokeswoman for the UK government said it reserved the 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,” they added.
“We remain open to restarting talks with Canada in the future to build a stronger trading relationship”.
A UK government source said: “If Canada comes back to table with a serious offer and a desire to make progress we’re all ears.”
Total goods trade between the two countries was worth £19.2bn in 2020, according to the UK government, with UK imports from Canada worth £7.3bn and UK exports to Canada worth £11.8bn.
Minette Batters, president of the Nation Farmers’ Union of England and Wales, said the decision was “a relief for farmers”.
She told BBC Radio 4’s Today program 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.”
