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The Canadian envoy in London expresses hope for the resumption of trade talks between the two countries by the Labour Party.

The Canadian envoy in London expresses hope for the resumption of trade talks between the two countries by the Labour Party.

By Mounira Magdy

Published: July 6, 2024

The overwhelming victory achieved by the Labour Party in the UK elections on Thursday has renewed hope for the possibility of resuming trade talks between Ottawa and London, according to the Canadian High Commissioner in the UK.

In the hours following Keir Starmer's win, Canada’s envoy in London told CTV News that he believes the change in government could be a good thing since the UK suspended talks between the two countries in January.

High Commissioner Ralph Goodale stated, "I am confident that the dialogue will be open and very constructive."

Among the sticking points that halted the talks was the UK’s desire to export more cheese to Canada, but the exemption from dairy quotas ended at the end of 2023.

A continuity agreement was set up after the UK left the European Union so that another agreement could be negotiated as the country was no longer covered by the Comprehensive Economic and Trade Agreement between the EU and Canada (CETA).

Goodale said that under CETA, the UK benefited from a "generous access quota" for the flow of European cheese into Canada. The High Commissioner noted that the British were among the largest users of this quota before leaving the EU; however, he emphasizes that the UK requested to double the amount provided under CETA.

The High Commissioner told CTV News that this is not the beginning.

He added, "It feels like you’re getting off a plane, and they say to you: 'Now, check your seats and make sure you’ve taken all your personal belongings before leaving the plane.' The British left the plane and left their cheese quota on the shelves."

The Labour Party, led by Starmer, has promised to reset international relations and begin signing the trade deal. While the party's election statement indicated that it would not attempt to reverse Brexit, it stated that a Labour government would work to "remove unnecessary barriers to trade" with the EU.

Goodale believes this bodes well for any new negotiations for a Canada-UK trade agreement.

In an interview with CTV News, Goodale said, "Perhaps much of the tension at the negotiation table will be replaced by a new management with a new perspective."

The importance of the free trade agreement between Canada and the UK was highlighted in a press release from Trudeau congratulating Starmer after his election victory, emphasizing the ongoing work to finalize the agreement.

The statement from Prime Minister Justin Trudeau said, "Our countries have strong economic ties, and I look forward to further strengthening them with Prime Minister Starmer."

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