Trade negotiations between the UK and Canada put on hold due to ban on hormone-treated beef

Negotiations between the UK and Canada for a post-Brexit trade agreement have come to a halt after almost two years of discussions. Currently, trade between the two countries operates under the terms of an agreement that the UK carried over from its time as an EU member. This agreement allowed the UK to sell cars and cheese in Canada without high import taxes, but its time-limited nature necessitated new negotiations. Unfortunately, talks about extending the agreement have broken down, prompting the UK government to "pause" the negotiations. This marks the first time that the UK has formally discontinued trade talks with a partner since leaving the EU trading regime. The discussions for a bespoke trade agreement between the two countries had been ongoing since March 2022. Canada had been under pressure from its domestic cheese producers and had been advocating for the UK to lift its ban on hormone-treated beef, claiming it effectively excludes them from the British market. Consequently, British car companies may now face higher tariffs to sell their products in Canada starting in April. Additionally, higher import taxes on British cheese sold in Canada have already been in effect since the previous terms expired at the end of 2023. Representatives from both nations expressed disappointment at the pause in talks, with Canada's trade minister's spokeswoman highlighting the barriers in the agriculture industry and the UK government emphasizing the need for trade deals that benefit the British people. However, the UK government remains open to future negotiations with Canada, provided there is a serious offer and a desire to make progress. In 2020, the total goods trade between the two countries amounted to £19.2 billion, with UK imports from Canada valued at £7.3 billion and UK exports to Canada worth £11.8 billion.