Kemi Badenoch is embroiled in another political row after Canada refuted her claim she was engaging with them on trade talks.

The country’s high commissioner to the UK, Ralph Goodale, has told MPs that no discussions of any kind are happening.

The intervention risks inflaming tensions after Ms Badenoch paused negotiations with Canada on a new free trade agreement last month, amid a standoff over beef and cheese.

It comes as she is embroiled in a separate spat with the ousted chairman of the Post Office, over his claims that he was told to stall compensation payments for victims of the Horizon scandal, which she denies.

Despite pausing the trade negotiations with Canada, Ms Badenoch went on to tell MPs a few days later that talks were ongoing ahead of a looming March deadline that will trigger a hike in tariffs for UK car makers.

Asked in the Commons on 29 January how she plans to “avoid a UK tariff war”, Ms Badenoch said she wanted to “state explicitly that talks have not broken down”.

The business secretary said the two sides “have an ongoing rules-of-origin discussion” in relation to the car tariffs and “we are also having multiple discussions with Canada on cheese”.

Three killed in Canadian ski-helicopter crash

Justin Trudeau petitioned to apologise for Canada’s past treatment of British child migrants

Man accused of sending poison to people at risk of self-harm is charged with 14 murders

But this has been disputed by Canada in a letter to the Commons Business Committee dated 16 February.

Mr Goodale wrote that he is “disappointed with the unilateral pause in these negotiations”.

Please use Chrome browser for a more accessible video player

‘Questions to answer’

He added: “As far as I’m aware, since the UK announced its pause on January 25, there have been neither negotiations nor technical discussions with respect to any of the outstanding issues – including British access to Canada’s Tariff Rate Quotas for cheese and the approaching expiry of cumulation provisions respecting Rules of Origin.”

Liam Byrne, chair of the Business Committee, is now demanding Ms Badenoch correct the record.

“It is essential the secretary of state now explains why the Canadians’ account of the talks is so utterly at variance with what she told the House of Commons,” the Labour MP told the Financial Times.

Sharing the letter in a post on X, he added that “without doubt there are now some questions to answer”.

Read More:
Brexit: Why meat, fish, cheese and dairy products will cost more from today
Labour demands Cabinet Office probe into ex-Post Office chair Staunton’s claims

The UK and Canada have been holding talks on a post-Brexit trade deal for the past two years, while widely continuing to trade on EU terms in the interim.

This has allowed the UK to continue selling its cheese products without facing an import tax, which has caused anger among Canadian farmers.

Be the first to get Breaking News

Install the Sky News app for free

The agriculture sector also wants the UK to relax its ban on hormone-treated beef, but ministers are yet to move.

A time-limited agreement had also allowed the UK to continue to sell cars without high import taxes, but given the negotiations have paused this is now in doubt, with the terms due to expire at the end of March.

Related posts:

Booster jab rules will not change unless JCVI says so, minister says MPs to be offered security guards for constituency surgeries following murder of Sir David Amess Why the government’s social care cap plan is worrying some Tory MPs Rebel Tory ‘was going to withdraw no-confidence letter until PM said Ukraine fight was like Brexit’ As the emotions subside the hard reality kicks in – aftermath of Boris Johnson’s confidence vote Labour MP resigns after suspension for ‘serious sexual misconduct’ Sunak mulls crackdown on foreign students to reduce immigration Boris Johnson says he’ll find it ‘very difficult’ to vote for Sunak’s new Brexit deal Starmer appoints partygate investigator Sue Gray as new chief of staff Boris Johnson says he will find it ‘very difficult’ to vote for Sunak’s new Brexit deal Jeremy Hunt mulls major benefits squeeze to fund inheritance tax cuts Tories think they’ve spotted a Labour weakness – and are scouring for opportunities