Me and a couple other players are having a problem where we can't trade Pokémon because it keeps coming up that the trade was cancelled when nether one of use cancelled the trade.
Trades stop working when the server is lagging usually happens with the first couple servers. You can hop and switch to another server. When the server restarts it gets fixed. We apologize for this happening.
Trades also get cancelled if you don't pick a option in the trade menu but this might have probable been lag as MrWaffleFries suggested.