Another Trade Barrier

Let's dig into the UK's side of the story surrounding the breakdown of agricultural trade talks with Canada.

Since Brexit, Canada-UK trade had continued under a rollover agreement from the previous EU-Canada trade deal. Now, Britain’s government is standing firm in its refusal to loosen restrictions on imports of hormone-treated beef, even at the expense of Canadian markets for its cars and cheese.

International trade agreements are especially significant in export-oriented sectors of the economy. Since about the 1960’s when farm lobbying and marketing boards came into play, they have become highly political as well.

Since the late 1980’s, concerns and conditions for European food safety, animal welfare and the environment have markedly diverged from North American trends in industrial agriculture. Economies of scale, coupled with lack of oversight, have driven an ever-expanding environmental footprint here, while European farms have been forced into tighter regulations and restrictions.

This week’s failed negotiation stems from the UK’s unwillingness to weaken their stance on animal health and welfare standards, in response to Canada’s demands to relax the ban on hormone-fed beef. According to the UK’s Country Land and Business Association, “It would be an unfair market for British farmers if they have to compete with imported meat produced to lower and cheaper standards than would be legal here.”