Canadian opposition leader Pierre Poilievre discusses trade relations between the United States and Canada on ‘Kudlow’.
European Commission President Ursula von der Leyen proposed on Wednesday that Canada become the EU’s first “associate member,” a pivotal move bringing Ottawa closer to the bloc amid an unresolved trade dispute with the United States.
Addressing Canadian Prime Minister Mark Carney in Strasbourg during her annual State of the European Union address, von der Leyen called for a significant expansion of economic, technological, and security cooperation between Canada and the EU.
“I want to work with you to open the door for Canada to become the EU’s first associate member,” von der Leyen stated, prompting a standing ovation from EU lawmakers before she approached Carney to embrace him.
European Commission President Ursula von der Leyen delivers a speech near Canadian Prime Minister Mark Carney during the annual State of the Union address at the European Parliament in Strasbourg, eastern France, on September 16. (Photo by Jean-Christophe Verhaegen/AFP via Getty Images)
Von der Leyen stated that the two sides would transition from their existing CETA trade agreement to what she termed an “Alliance for the Future,” designed to establish a shared space for prosperity and economic security.
The proposed partnership would enhance cooperation across advanced manufacturing, defense production, energy, critical minerals, artificial intelligence, quantum technology, cybersecurity, and Arctic initiatives.
“We see the world with the same eyes,” von der Leyen remarked, highlighting shared positions on issues ranging from Ukraine and defense to supply chains and climate change.
Canadian Prime Minister Mark Carney shakes hands with a Member of the European Parliament upon arriving near EU Parliament President Roberta Metsola during the European Commission president’s annual State of the Union address at a plenary session of the European Parliament. (Photo by Jean-Christophe Verhaegen/AFP via Getty Images)
“Above all, Europe and Canada believe in democracy,” she stated. “This partnership is not against anyone else, but rather a demonstration of our common strength.”
The proposal comes as Canada seeks to diversify its trade away from its heavy reliance on the United States.
Carney has pledged to double Canada’s non-U.S. trade over the next decade following the collapse of trade talks last month, which triggered a series of reciprocal tariff measures.
Earlier this week, Carney—who is scheduled to address the European Parliament on Thursday—stated that Canada is seeking a “unique alliance” with the EU, but not formal membership.
More detailed discussions are expected to commence at the Canada-EU summit in Montreal in late October.
Canadian Prime Minister Mark Carney smiles as he listens to the European Commission president deliver a speech during the annual State of the Union address at a plenary session of the European Parliament in Strasbourg, eastern France, on September. (Photo by Jean-Christophe Verhaegen/AFP via Getty Images)
However, the proposal still faces significant legal and political hurdles. The EU has historically resisted flexible alliances that lack a defined legal status.
Speaking to Reuters, an EU diplomat expressed surprise at von der Leyen’s announcement, noting the proposal was too vague and warning that the Commission president was “overpromising and won’t be able to deliver.”
Deeper economic integration could also encounter longstanding trade obstacles. Mark Manger, a professor of political economy and global affairs at the University of Toronto, told Reuters that EU officials have been frustrated by Canada’s protection of its telecommunications and dairy sectors—issues that could complicate efforts to further deepen economic ties.
It will ultimately be up to EU member states to decide whether the proposal moves forward.