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The British government has cancelled negotiations for trade with Canada following a breakdown in talks over differences surrounding the trade of beef and cheese after Brexit.
For the past two years, the two nations have been in talks to establish a new trade agreement following Britain’s complete departure from the European Union. Trade between the two countries has largely remained the same as it was when Britain was still part of the bloc.
The U.K. government released a statement on Thursday stating that they are willing to resume discussions in the future, but no advancements have been made yet. The yearly trade between the two nations is estimated to be worth 26 billion pounds ($33 billion).
As the discussions progressed, Canadian negotiators faced increasing pressure from their beef industry and domestic cheesemakers.
The beef industry desired entry into the UK market for their hormone-fed beef, but the cheesemakers expressed concerns about the potential economic consequences of tariff-free British cheese, particularly cheddar. However, after a temporary side agreement expired, cheese exports from Britain became subject to tariffs again, with British producers facing a significant increase of 245%.
On a social media platform previously known as Twitter, Canada’s trade minister, Mary Ng, stated that the Canadian government will not accept any trade agreements that do not benefit our workforce, agricultural industry, and businesses.
Minette Batters, president of the Nation Farmers’ Union of England and Wales, praised the British government, especially its apparent refusal to allow hormone-linked beef to be allowed into Britain.
She stated that the topic of trade involving agricultural goods is always brought up first and resolved last. She expressed satisfaction that the government stayed firm in their stance and did not make any concessions.
During the 2016 referendum on Britain’s EU membership, a key advantage touted was the ability for the country to pursue its own trade policy.
Since the implementation of Brexit, there have been minimal new trade agreements negotiated, and the resulting advantages are generally seen as limited compared to the trade barriers now in effect between Britain and the EU. Prior to Brexit, Britain had the ability to engage in unrestricted trade within the EU.
The Conservative government of Britain, who were responsible for negotiating the trade agreement with the EU after Brexit, attempted to minimize the significance of the breakdown in discussions with Canada.
Camilla Marshall, a representative for Prime Minister Rishi Sunak, stated that our independent trading status allows us to prioritize the specifics of every deal in order to guarantee its success, particularly in the best interest of the United Kingdom.
She stated that we are willing to resume discussions with Canada at a later time in order to create a mutually beneficial trade partnership for businesses and consumers from both countries. However, there is currently no set timeline for these talks.
After the negotiations fell apart, there is now concern that British automobiles may face increased tariffs starting in April for exports. This would occur when the temporary agreement, similar to the one for cheese, expires.
The British Chambers of Commerce expressed disappointment in the failure of the negotiations and called on the government to provide assistance to the impacted industries.
According to William Bain, the trade policy chief of the chamber, the removal of important trade preferences has placed our dairy exporters and some sectors of our manufacturing industry in a disadvantageous state compared to 2020.
The Labour Party, the leading opposition party in Britain, currently has a large lead over the Conservative party in polls for the upcoming general election. They have stated that the breakdown of the negotiations is yet another example of the government’s inability to fulfill its promises regarding Brexit.
Source: independent.co.uk
