EU is 'impossible' to do deals with, Canada says sparking fears about Brexit negotiations

The EU is "impossible" to do deals with, the Canadian government said as a major trade agreement appeared to be on the brink of collapse.

In a sign of how difficult Britain's Brexit negotiations will be, the Canadians walked out of talks on Friday after a major trade deal was put on hold because of a tiny region in Belgium.

The region of Wallonia, population 3.5 million, is blocking the Canada-EU trade deal, which was due to be signed next week after seven years of talks.

Under the Belgian political system, major international deals need to be signed off by regional parliaments.

Wallonian farmers are opposed to the deal because they fear that the country will be flooded with cheap agricultural imports.

It raises the prospect of a tiny region like Wallonia attempting to blockwhatever deal Britain emerges with during Brexit talks.

Chrystia Freeland, Canada's international trade minister, said: "It's become evident for me, for Canada, that the European Union isn't capable now to have an international treaty even with a country that has very European values like Canada. And even with a country so nice, with a lot of patience like Canada."

She added: "I've worked very, very hard, but I think it's impossible. "We have decided to return home. I am very sad. It is emotional for me."

Speaking in Brussels, Prime Minister Theresa May made clear that she believes the Canada-EU trade deal is "very important".

Mrs May used her first appearance at the European Council to reject a demand by the EU to conduct Brexit talks in French.

She also hit out at EU leaders for their lack of "maturity" after they issued Britain with a series of threats over Brexit.

And she made clear that her Government will begin negotiations with foreign countries about trade deals, despite demands from Brussels that this only happens after Brexit.

European leaders including Francois Hollande of France and Martin Schulz, the president of the EU parliament, used the summit to attack Mrs May and warn her that they intend to make Britain's negotiations "hard".

However, Mrs May brushed aside their threats and called on them to have "mature" discussions with Britain.

She said: "Here at the summit I have been clear that my aim is to cement Britain as a close partner of the EU once we have left.

"Yes the United Kingdom will be a fully independent sovereign country, free to make our own decisions on a whole host of different issues such as how we choose to control immigration. But we still want to trade freely in goods and services with Europe.

"I want a mature, cooperative relationship with our European partners. I recognise the scale of the challenge ahead. I am sure there will be difficult moments.

"It will require some give and take. But I firmly believe that if we approach this in a constructive spirit - as I am - then we can deliver a smooth departure and deliver a powerful new relationship that works both for the UK and for the countries of the EU, looking for opportunities not problems.

"That is in Britain's interests and it is in the interests of all of our European partners too."

The Prime Minister made clear that she will ignore EU leaders by attempting to strike trade deals around the world before the country formally leaves the EU. Brussels leaders have demanded that Britain does not try to do any deals before Brexit, which is expected in 2019.

However, Mrs May said on Friday: "The UK has long been one of the strongest advocates on Europe for free trade and will continue to be so.

"Indeed I want the UK to become more active not less in making the case for free trade around the world. That means that while we remain a member of the EU the UK will continue to back the EU's free trade negotiations.

"And as we prepare to leave the EU, I've been clear that the UK is discussing our future trading relationship with third countries.

"This will not undermine the EU's trade agenda. It is not in competition with it. We will continue to help the EU reach these important trade agreements. It is about seizing the opportunities of Brexit. About forging an ambitious and optimistic new role for Britain in the world."