Currently, trade between the two nations is conducted under the terms of an agreement that the UK carried over from its membership in the EU.
The UK was able to keep selling cars and cheese without having to pay expensive import taxes thanks to a temporary agreement.
However, negotiations to extend these as part of a new agreement have now collapsed.
As a result, the UK’s trading conditions with Canada will be worse than they were when the EU had a trade agreement with the nation.
Additionally, since formally exiting the EU, this is the first time the UK has formally suspended negotiations with a trading partner.
Canada and the UK reach a post-Brexit trade agreement
How many agreements has the UK made in trade?
Starting in April, British automakers may have to pay higher import duties, or tariffs, in order to sell into the Canadian market.
The previous terms, which expired at the end of 2023, had already resulted in higher Canadian tariffs of up to 245% on British cheese earlier this month.
Since March 2022, negotiations to reach a customized agreement have been ongoing between the two nations.
Domestic cheese producers had been putting political pressure on Canada’s government.
Additionally, it had been advocating for the UK to loosen the prohibition on hormone-treated beef, which, according to its producers, essentially keeps them out of the British market.
The UK government has the right to “pause negotiations with any country if progress is not being made,” according to a spokeswoman.
“We have always said we will only negotiate trade deals that deliver for the British people,” they stated.
“We remain open to restarting talks with Canada in the future to build a stronger trading relationship” .
“If Canada comes back to the table with a serious offer and a desire to make progress we’re all ears,” a UK government source stated.
According to a representative for Canada’s trade minister Mary Ng, she had informed UK Business Secretary Kemi Badenoch that she was “disappointed” in the halt in negotiations.
