UK, Canada Pause Trade Talks, Agriculture Remains A Hurdle

British negotiators paused free trade talks with Canada on Thursday after years of discussions between the two Commonwealth nations, Ottawa said.

British cheese imports to Canada and Canadian beef exports to the UK remain major sticking points, a source close to the negotiations told AFP.

"We are disappointed that negotiations with the UK are being paused," a spokesperson for Canadian Trade Minister Mary Ng said in a statement.

"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 official said.

Ng has "been in touch" with her British counterpart Kemi Badenoch "to express our disappointment," the official added.

Britain began free trade negotiations with Canada -- and others -- after Brexit in 2020, hoping to gain market access it had through the European Union as well as deepen bilateral ties.

An interim agreement with Britain was put in place in 2021 that preserved many of the same conditions as under the Comprehensive Economic Trade Agreement (CETA) between Canada and the EU.

But British cheese imports to Canada expired at the end of December 2023. And other parts of the interim agreement are set to expire in March.

Canada has been pushing for more UK access for its beef and pork producers.

Prime Minister Justin Trudeau, meanwhile, had promised Canadian dairy farmers no more foreign cheese imports under its strict dairy supply management system, after making concessions to Washington in a North American free trade agreement.

Britain is Canada's third largest trading partners.