Canada wants to restart trade talks with UK, amid Trump tariffs row
Canada wants to restart discussions on a free trade deal with the UK, amid a row with US President Donald Trump over tariffs.
It comes as Trump put a pause on the 25 per cent tariffs he plans to impose on Canadian imports, after Canadian Prime Minister Justin Trudeau struck a deal over migration and border drug trafficking.
Trade between the UK and Canada was valued at almost £27bn in the year to September 2024, which marked an almost seven per cent increase on the previous year.
Speaking to Politico, Canadian high commissioner to the UK, Ralph Goodale stressed the upsides of negotiating a deal with the UK.
He said: “We now have both a great opportunity and a great reason to work really hard at trade diversification.
“It would be helpful to take another go at that and see what we can accomplish in the shortest possible time… if we can add on to it, so much the better.”
Last year the UK suspended its trade talks with Canada in pursuit of a new free trade agreement (FTA) after discussions broke down over beef and cheese.
And then-business secretary Kemi Badenoch, now Conservative leader, became embroiled in a row after claiming talks “have not broken down” ahead of a cliff-edge deadline – which Canada disputed in a letter to a Commons committee, calling it a “unilateral pause”.
Commenting now, Goodale added: “We realize we’re dealing with a new government with a different set of priorities and it may take them a while to do the internal consideration that they need to do, and that’s understandable.
“In the meantime, we do have a trade agreement in place that is pretty darn good.”
During a previous meeting, business and trade secretary Jonathan Reynolds and Canadian trade minister Mary Ng agreed officials should meet and restart discussions on an FTA.
It comes after UK trade minister Douglas Alexander also met with Ng in Vancouver in November last year, while attending a meeting of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) commission.
A Department for Business and Trade (DBT) spokesperson said: “Canada is an important ally and we highly value our trading relationship which is underpinned by the existing UK-Canada Trade Continuity Agreement and supports over £26bn of trade a year.
“Officials on both sides continue to have positive discussions, however no decision has been taken on restarting talks for an upgraded trade deal and negotiations remain paused.”