The United Kingdom has halted trade talks with Canada, with discussions breaking down due to a disagreement over beef and cheese.
The two nations have been negotiating for the last two years after Britain left the European Union, with trade continuing under the same deal originally brokered when the UK was a member of the bloc.
A UK Government spokesperson said: “We have always said we will only negotiate trade deals that deliver for the British people.
“And we reserve the right to pause negotiations with any country if progress is not being made.
“We remain open to restarting talks with Canada in the future to build a stronger trading relationship that benefits businesses and consumers on both sides of the Atlantic.”
The previous agreement had allowed the UK to continue to sell cars and cheese in the North American nation without Canada charging import tax.
However, Canada’s government has been facing pressure from the beef industry and domestic cheesemakers.
The UK had been trading with Canada on terms that largely replicated the arrangements in place from the UK’s time in the EU.
Negotiations began on a new agreement in March 2022.
A UK Government source said Canada appeared to have “lost sight of the bigger picture – the British and Canadian businesses who do £26 billion worth of trade a year and the people they employ”.
The source added: “If Canada come back to table with a serious offer and desire to make progress we’re all ears, but in the meantime we’re going to focus on other trade deals that deliver for UK businesses.”
A spokeswoman for Canada’s trade minister, Mary Ng, told the BBC she was “disappointed” at the cessation of talks and had said as much to Kemi Badenoch, the Secretary of State for Business and Trade.
Ms Ng’s spokeswoman added: “Their decision to continue to maintain market access barriers for our agriculture industry and unwillingness to reach a mutual agreement has only stalled negotiations.”
Ms Ng added on X, formerly known as Twitter, that the Canadian “government will never agree to a deal that isn’t good for our workers, farmers and businesses”.
Minette Batters, president of the Nation Farmers’ Union of England and Wales, praised the Government for having “stuck to its line and not given way”.
She told BBC Radio 4’s Today programme it was essential that hormone-treated beef is not allowed into the country.
“It is a relief for farmers. This has been going on for a long time and it is about enhancing the trading relationship between the UK and Canada.
“Trade on agricultural products is always the first thing to be discussed and the last thing to be agreed. I am pleased the Government has stuck to its line and not given way,” she said.
Ms Batters added: “Canada has played hardball for a long time. It was always going to come to a crunch point as to who was going to capitulate.”
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