Canada and EU Leaders Meet in Montreal to Forge Closer Ties Amid US Trade Pressure

TORONTO — Prime Minister Mark Carney once described Canada as “the most European of non-European countries” during the early stages of U.S. President Donald Trump’s trade war. Now, as he hosts European leaders to pursue an unprecedented alliance, the proposed EU “associate member” designation faces resistance, even though the bloc’s top official champions it.

European Commission President Ursula von der Leyen and European Council President António Costa are set to join Prime Minister Mark Carney in Montreal for a two-day summit. The meeting aims to deepen trade, defense, and economic ties as both Canada and Europe seek to reduce their reliance on Washington amid a shifting global order.

European Union officials briefing reporters ahead of the summit stated that the proposed partnership could bring Canada closer to the bloc than any previous agreement with a non-European nation. However, the structure and even the name of the partnership remain unsettled, with some member states questioning the “associate member” designation proposed last month by von der Leyen.

Upon arriving in Montreal, von der Leyen showed no signs of abandoning the proposal, posting on social media that Europe intends to bring Canada closer than ever before “as Associate Member of the EU.”

Anand Sundar, a special adviser at the European Council on Foreign Relations, noted that France and Germany are among the countries unhappy with the designation, suggesting it may not survive the upcoming summit.

Carney announced on Tuesday that the summit would launch further negotiations over the coming year.

“It doesn’t matter about specific names or nomenclature,” Carney stated. “What matters is the tangible difference this will make in the lives of Canadians—particularly young Canadians seeking opportunities to study, work, and travel, as well as our businesses and researchers gaining new depths of opportunity. Ultimately, it is about Canada becoming a more independent, sovereign nation where we can choose how we live our lives.”

Carney has explicitly ruled out formally joining the EU, which would require aligning Canadian laws and regulations with the bloc. Canadian officials clarified that Canada would not assume the EU’s membership-related budget obligations, though it could contribute to specific programs. Carney has emphasized that any enhanced partnership would ultimately require a vote in Canada’s Parliament.

This summit puts Carney’s vision for a new global order to the test. At the World Economic Forum in Davos, Switzerland, in January, he warned that the U.S.-led international order is breaking down, urging middle powers to unite against economic coercion.

Trump has suggested that Canada’s proposed EU arrangement could be viewed as a “hostile act,” threatening tariffs on Europe if he deemed the alliance unfriendly. In response to questions about potential retaliation, a senior Canadian government official stated that the closer relationship is not directed against the United States but rather reflects long-standing shared interests.

The summit is expected to launch an “Alliance for the Future,” a framework for closer cooperation on trade, defense, critical minerals, technology, and research. Von der Leyen stated that the alliance would help Canada and Europe jointly respond to a world of growing geopolitical rivalries.

The proposed relationship could feature regular meetings between Canadian ministers and European commissioners, alongside expanded opportunities for students through the EU’s Erasmus+ program, which supports international study and educational exchanges.

European commissioners and Canadian Cabinet ministers will engage in sector-specific meetings, starting with a business forum on Thursday ahead of formal leaders’ talks on Friday. Officials hope to develop the broader partnership for potential endorsement in 2027.

Tobias Gehrke, a senior policy fellow at the European Council on Foreign Relations, stated that the disagreement over terminology is unlikely to derail closer cooperation.

“There is no magic shortcut to rapidly reducing Europe’s and Canada’s reliance on the U.S. economy and military — not least since Washington might retaliate,” Gehrke remarked. “But the political window is now wide open to take a much bigger step than was previously conceivable.”

Canada has long looked to Europe as a strategic partner to reduce its economic and geopolitical dependence on its much larger southern neighbor.

“It was the idea of not being alone with the Americans that drove this strategic pivot,” explained Robert Bothwell, a historian at the University of Toronto.

Carney brings deep personal ties to Europe to the summit. The former Bank of Canada governor, who led the Bank of England from 2013 to 2020, broke with tradition by choosing Paris and London for his first foreign trip as prime minister rather than Washington. He noted that these destinations reflect Canada’s founding Indigenous, French, and British heritage.

Daniel Béland, a political science professor at McGill University in Montreal, noted that the policies and rhetoric of the Trump administration are accelerating Canada’s efforts to build stronger ties beyond the United States.

“The policies and rhetoric of the Trump administration are clearly pushing both Canada and the EU to imagine a world without strong U.S. leadership and to act accordingly,” Béland added.

Ottawa is currently reviewing plans to acquire 72 additional American-made F-35 fighter jets while also considering Sweden’s Saab Gripen as a potential alternative. Canada has already committed to an initial purchase of 16 F-35s.

Canada is the only non-European country participating in the EU’s 150-billion-euro ($167-billion) SAFE defense procurement program, which allows Canadian companies to participate in joint European military purchases.

However, deeper defense cooperation faces obstacles. Sundar explained that France is pushing for strict “Made in Europe” rules, which could limit Canadian companies’ access to future EU defense spending, while Germany favors broader participation by non-EU countries. He added that negotiations over the EU’s next seven-year budget could ultimately matter more to Canada than any announcements made in Montreal.

The two sides already have a comprehensive free trade agreement, known as CETA, which eliminated most tariffs. While most provisions have been in force since 2017, some EU member states have yet to ratify it.

The United States accounted for 71.7% of Canada’s merchandise exports in 2025. Carney has set a goal to double Canadian exports to other countries over the next decade.

Canada and the EU are pursuing closer cooperation on digital trade and critical minerals, including potential financing from the European Investment Bank. Canadian officials announced on Wednesday that they are exploring ways to stabilize mineral prices and encourage investment.

Gehrke noted that Europe’s growing trade confrontation with China is driving demand for Canadian critical minerals. He highlighted a complementary relationship where Canada possesses the resources and mining expertise Europe needs, while Europe offers industrial demand, technology, and capital.

Sundar stated that the shifting international order presents Europe with a significant opportunity to emerge as a more influential global power.

“Trump’s predatory behavior is allowing the EU to position itself as an alternative geopolitical anchor,” he concluded.

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