U.K.’s Beef with Canada Hits Auto Trade

Trade talks between Commonwealth partners Canada and the U.K. have stalled over hormone-treated beef threatening British automotive exports to the North American market.

The BBC reports that the U.K. called a halt to the talks because the Canadian government wants the nation’s ban on imports of hormone-treated beef to be relaxed in any mutually beneficial trade deal. U.K. negotiators defended the decision to suspend the Free Trade Agreement negotiations with the desire by its own farmers to adhere to a hormone-free beef industry in compliance with the European Union ban in effect since 1989.

However, the knock-on effect on the U.K.’s export-heavy automotive industry threatens to be severe with Canada being a major importer of its vehicles, according to the Department for Business and Trade.

The U.K.'s biggest goods export to Canada is cars and in the 12 months to the end of the second quarter of 2023, exports were worth £745.8 million ($947.4 million). A time-limited agreement had allowed the U.K to continue to sell cars without high import taxes but this is now in doubt.

Mike Hawes of the U.K.’s Society of Motor Manufacturers and Traders issued an alarmed statement, saying: “Canada is an important market for U.K. car exports and, given the close ties between our two countries, the suspension of trade talks is especially disappointing and sends a signal that the U.K.’s world-class automotive products are not welcome in Canada. If U.K. car exports can't use EU parts and components to avoid additional duties it creates a risk that tariffs, potentially charged on top of luxury goods taxes, could be reintroduced. This would benefit no one, not least Canadian consumers, and we urge all parties to get back around the negotiating table.”