UK and Canada give up on trade talks

30th January 2024

After almost two years of negotiations, the UK and Canada have walked away from trade deal talks, following a disagreement over agri-goods.

Cheese

Earlier this year, UK cheesemakers lost tariff-free access to the Canadian cheese market.

A special provision had been agreed upon that enabled UK cheesemakers to continue trading under the more generous quota of EU products. ‘The cheese letters’ ensured that the UK’s exports contributed to the EU’s quota of internationally sourced cheese. From this year, those seeking to sell cheese to Canada will be required to partner with a Canadian importer and secure a license to fulfil the “non-EU source reserve” and products falling outside the quote will face an import duty of 245%, which could price producers out of the market.

Beef

Cheese hasn’t been the only sticking point, over the past year Canada’s government has faced pressure from its farmers not to engage with the UK on trade in beef products. As the UK won’t accept Canadian beef exports due to the use of a banned growth hormone, Ottawa deemed this created an unfair playing field in which UK farmers had “unfettered access” to Canada while Canadian farmers were shut out of the UK.