U.K., Canada won’t extend post-Brexit arrangement [Video]

LONDON –

Britain said on Wednesday that post-Brexit trade arrangements with Canada that enable its carmakers to avoid high tariffs there were likely to expire next week, marking the latest deterioration in trade ties between the historic allies.

Britain and Canada paused talks over a new free trade agreement in January amid disagreement on Rules of Origin (ROO) arrangements, due to expire at the end of March, as well as mutual unhappiness about a lack of access to agricultural markets.

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On Wednesday, Britain said Canada had decided not to roll over the Rules of Origin arrangements it had agreed when it left the European Union, terms that had been used as a stop gap while the two sides tried to agree on a full trade deal.

Under the terms, both sides agreed that U.K. goods that …