The “continuity deal” between Canada and the U.K. after Brexit ends on Sunday

On Dec. 31, an interim deal will expire that sees Ottawa offer London a special quota of English cheeses that can be imported into Canada at low tariffs. (Photo: The Canadian Press)

English cheeses will soon be hard to find in Canadian supermarkets as the two countries still try to negotiate fair trade terms after the U.K. leaves the European Union.

On Dec. 31, an interim deal will expire that sees Ottawa offer London a special quota of English cheeses that can be imported into Canada at low tariffs.

Canada made the offer in the hope that it had already signed a permanent deal with the UK to replace the “Continuity of Trade Agreement” which came into effect on April 1, 2021. This deal retained some of the terms that governed trade between the two countries prior to Brexit.

However, negotiations to replace the interim agreement have not ended. In particular, the UK rejects Ottawa’s demands to allow Canada to export hormone-raised meat. London is also calling for better access to the Canadian dairy market, partially protected by supply management.

Peter Holmes, a researcher at the British Trade Policy Observatory, says Canada has the upper hand at the negotiating table as the British government wants new trade deals to convince English voters that the Tories have finally mastered “Brexit”.

Mr Holmes says disagreements over cheese and beef are likely to cause Ottawa to delay approving the UK’s membership of the Trans-Pacific Partnership, even though the two countries insist they have good relations, good relations.

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