Britain waiting for Parliament to return before deciding on pursuing Canada-U.K. trade deal

British High Commissioner to Canada Rob Tinline has indicated that the U.K. government is eagerly awaiting the Canadian government to be fully in place before deciding on whether to restart talks regarding a potential bilateral trade deal. Negotiations had previously collapsed at the beginning of last year, and both parties are now waiting for the right time to resume discussions.

Tinline mentioned in an interview on Rosemary Barton Live that aired on Sunday that the U.K. government had paused the talks over a year ago due to the inability to find a suitable landing point for a trade deal. With the recent general elections in both countries and the speech from the throne in Canada, the timing for resuming negotiations is crucial.

One of the major issues that led to the breakdown of negotiations was the access of U.K. producers to the Canadian cheese market. After Brexit, an interim agreement allowed tariff-free British cheese in Canada for three years, but this arrangement expired at the end of 2023. The renegotiation of the former North American Free Trade Agreement also played a role, with Prime Minister Justin Trudeau promising dairy farmers that no further access to the domestic market would be granted in future negotiations.

Despite the challenges, both Tinline and Ralph Goodale, Canada’s high commissioner to the U.K., expressed optimism about reaching a deal. Goodale emphasized that the existing trade agreement already provides extensive access to each other’s markets, with only one percent left to be discussed.

Looking ahead, the U.K. is hopeful that Canada’s new Parliament will pass a bill ratifying its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, allowing both countries to benefit from the Pacific trade deal. Prime Minister Mark Carney has also shown keen interest in expanding Canada’s trade partnerships globally, particularly in light of ongoing trade disputes with the United States.

In a letter to his cabinet, Carney emphasized the need to redefine Canada’s international relationships and explore new partnerships with reliable allies. He recently met with British Prime Minister Keir Starmer to discuss strengthening the commercial ties between the two countries.

Overall, the U.K. and Canada are looking to build on their longstanding relationship, not just in terms of the economy but also in promoting and defending common values on the global stage. As both countries navigate the post-pandemic economic landscape, a renewed focus on bilateral trade could bring mutual benefits and strengthen their partnership for years to come.