By Paul Vieira

OTTAWA--The U.K. said on Thursday it would pause negotiations with Canada on a comprehensive liberalized-trade treaty, citing a lack of progress. Canada said talks stalled over agriculture, and British reluctance to increase market access for the Canadian agrifood sector.

"We reserve the right to pause negotiations with any country if progress is not being made," according to a statement from the U.K. government, published on the social-media platform X, formerly known as Twitter, by the High Commissioner to Canada. The statement added that the U.K. would be willing to restart talks with Canada, so long as it benefits businesses and consumers "on both sides of the Atlantic."

The statement didn't elaborate on why talks, launched in March 2022, broke down. A spokesman at the U.K. High Commission in Ottawa declined further comment.

Meanwhile, a spokeswoman for Canadian Trade Minister Mary Ng said Britain's decision to "maintain market-access barriers for our agriculture industry and unwillingness to reach a mutual agreement has only stalled negotiations."

The spokeswoman added Canada is confident that a deal can eventually be reached.

Canadian agrifood groups, such as the Canadian Pork Council, had testified before lawmakers last year that what was being proposed in talks between London and Ottawa wouldn't increase access for their products in the British market. Meanwhile, Britain was seeking increased access in Canada for its domestic cheese producers.

In November 2020, to much fanfare, Canadian Prime Minister Justin Trudeau and former U.K. leader Boris Johnson announced an interim trade pact to take effect in 2021, once Britain was no longer part of a European Union-Canada trade treaty. At that time, Trudeau and U.K. officials pledged to work toward a more comprehensive trade agreement.

Canadian government data covering 2022 indicate that the U.K. was Canada's third-largest trading partner, with trade in goods and services valued at 46.5 billion Canadian dollars, or the equivalent of US$34.4 billion.

Write to Paul Vieira at paul.vieira@wsj.com


(END) Dow Jones Newswires

01-25-24 1653ET