The UK has stopped its trade talks with Canada, after nearly two years of negotiations on a post-Brexit agreement.
Trade between the two countries currently takes place under the terms of a deal the UK rolled over from its time as an EU member.
That agreement contained time-limited terms allowing the UK to sell cars and cheese without high import taxes.
Talks had been taking place about extending this as part of a new deal.
However, these have now broken down, with the UK government saying it has decided to “pause” talks between negotiators.
It marks the first time the UK has formally halted talks with a trade partner since formally leaving the EU trading regime in 2021.
Talks between the two countries on a bespoke agreement have been taking place since March 2022.
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Canada’s government had been facing political pressure from domestic cheese producers.
It had also been pushing for the UK to relax a ban on hormone-treated beef, which its producers say effectively shuts them out of the British market.
It means British car companies now face the prospect of higher tariffs to sell into the Canadian market from the start of April.
Higher import taxes on British cheese sold in Canada kicked in earlier this month, after the previous terms expired at the end of 2023.
A spokeswoman for Canada’s trade minister Mary Ng said she were “disappointed” at the pause in talks, and had communicated this to 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.
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 said, adding:
“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.
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