Canadian officials are negotiating with the European Union for closer ties with the economic bloc in response to the breakdown of trade negotiations with the United States earlier this summer, including the possibility of Canada becoming an “associate member” of the union.
Although the EU is historically not known for allowing flexible membership arrangements with individual countries, European officials are reportedly open to Canada joining as an “associate member,” according to officials from both Canada and the EU.
Such a move could mark the largest reorientation of the Canadian economy in decades. The United States has long been Canada’s largest trading partner, with about 72 percent of Canadian exports going to the US.
Details of a potential agreement are still being discussed. However, the arrangement could lead to increased trade between Canada and the EU, including the possibility of shipping fertilizer through the Arctic and building new natural gas pipelines, which could help Europe reduce its reliance on Russian natural gas.
The two sides could also collaborate on laying new underwater cables, launching satellites and building data centres as people on both sides of the Atlantic become increasingly cautious about relying on US technology companies.
Canadian Prime Minister Mark Carney has strong ties to Europe. He studied at the University of Oxford and previously served as governor of the Bank of England. He also maintains regular contact with European leaders, including French President Emmanuel Macron.
According to the report, Carney and Macron have discussed plans that could allow Canadians to live and work in Europe without visas. Carney is also reportedly seeking to join the EU’s study-abroad programme, which allows students to take classes at universities across borders.
Carney is travelling to Europe, with visits scheduled for Liverpool and Strasbourg. He is expected to address the European Parliament, attend the State of the European Union address and meet members of the European Parliament to strengthen Canada’s ties with the EU in trade, investment and security.
It remains unclear whether Carney will announce any formal plans regarding Canada seeking “associate member” status during the trip.
The reported talks with the EU come as Canada remains embroiled in a trade dispute with the United States. Canadian negotiators were instructed to walk out of talks with their American counterparts in August.
Canada and the United States have imposed reciprocal tariffs on each other, while the White House has recently escalated the dispute by restricting some Canadian dairy, alcohol and other goods.
The US administration has also threatened to prevent Canadian aircraft manufacturer Bombardier from selling foreign-built planes in the United States.
Since returning to office, US President Donald Trump has repeatedly threatened and mocked Canada as the “51st state.” He has also taken other controversial steps amid the trade dispute, including changing the official name of Lake Ontario to “Lake America.”
