Canada is exploring a new form of partnership with the European Union as tensions grow between Canada and the United States over trade. Prime Minister Mark Carney made a strong case for the idea during a speech to the European Parliament in Strasbourg on September 17, 2026. He said that Canada and Europe are both strong nations, but together they can be even stronger.
Carney’s remarks came after European Commission President Ursula von der Leyen proposed that Canada become the first associate member of the bloc. This new arrangement would allow Canada to work more closely with the EU in areas like artificial intelligence, defense, energy, and critical minerals. The idea is part of a larger shift in Canada’s foreign policy, one that moves away from heavy reliance on the United States.
Currently, about two-thirds of Canadian exports go to American markets, a level that has drawn attention from government officials. Statistics Canada reported that 66.35% of Canadian exports went to the United States in July. The year-to-date share was about 68%.
In recent months, Carney has held talks with European leaders as he seeks stronger economic and security ties outside the United States. The European Commission appointed Joost Korte as a special envoy for the EU-Canada partnership. Korte met Canadian officials in Ottawa earlier this year to discuss trade, security and foreign policy cooperation.
The focus of the discussions is on allowing smoother movement of goods, services and people between Canada and EU countries. Carney has called for seamless digital trade and more opportunities for Canadians and Europeans to work and study on either side of the Atlantic.
Projects under discussion include digital infrastructure, energy links and closer cooperation in space. Earlier reporting also described discussions about data centers, underwater cables and energy infrastructure. Canada is seeking new markets for its energy and natural resources as part of its effort to reduce its dependence on the United States.
President Donald Trump responded quickly to the announcement, calling it laughable. He warned that the U.S. might impose new tariffs on European goods if he viewed the partnership as hostile. Trump said the United States could impose heavy tariffs or restrict trade with Europe if the plan was intended as a move against the United States.
The European Commission said that the plan is not meant to be a challenge to the United States. Commission spokesman Olof Gill said the proposed partnership was intended to strengthen Canada and Europe rather than target another country.
The proposal is still at an early stage. The European Union has never had an associate member and its treaties do not define such a category. EU member states would have to approve any formal new partnership structure involving Canada. Officials have not yet established exactly what rights or obligations associate membership would include.
Ten European nations have not yet ratified a trade deal with Canada. The Comprehensive Economic and Trade Agreement has been applied provisionally since 2017 but Belgium, Bulgaria, Cyprus, France, Greece, Hungary, Ireland, Italy, Poland and Slovenia still have not completed national ratification.
Carney emphasized that Canada wants greater resilience rather than a new bloc aimed against another country. He said closer ties with Europe could also make Canada a stronger partner for the United States. He outlined cooperation in areas like defense, artificial intelligence, energy security, critical minerals, space and financial systems as key goals.
More details could emerge at the next Canada-EU summit, scheduled for October 29 and 30 in Canada. Canadian officials have said the shape of the new relationship could become clearer at that meeting.
Carney, who previously led the Bank of England, has made diversification of Canada’s economic relationships a major part of his government’s strategy. Canada has also joined the EU’s Security Action for Europe defense initiative and has expanded cooperation with European partners in critical minerals and security.
He said that Canada is not just a fair-weather ally, but one that stands firm through challenges. Carney told European lawmakers that Canada and Europe share values and should build greater resilience so that no outside power can control their markets or undermine their sovereignty.
Some European lawmakers say the proposal still needs much more detail. German member of the European Parliament Tobias Cremer said the two sides now need to turn the idea into a concrete model. He supports closer Canada-EU ties but acknowledged that the meaning of associate membership remains unclear.
The concept of associate membership is not currently part of EU treaties. Earlier in the year, German Chancellor Friedrich Merz suggested a similar idea for Ukraine. His proposal would have allowed Ukraine to participate in EU summits and some institutions without receiving full voting rights. Ukraine gave the idea a cool reception because it is seeking full EU membership.
Talks between Washington and Ottawa broke down last month, leading to tariffs from both sides. The United States imposed 50% tariffs on about $20 billion of Canadian goods after negotiations collapsed in August. Canada responded with equivalent tariffs.
The Trump administration has previously accused Canada of unfair trade practices and used those complaints to justify tariffs. Canada has disputed many of the U.S. claims and has accused Washington of imposing unjustified trade barriers.
Trump did make a tariff threat directly connected to the Canada-EU proposal. He said serious tariffs could be imposed on Europe if he concluded that the proposed relationship was hostile to the United States. He also said he would have no objection if the arrangement was made with good intentions.
The European Parliament is not formally deciding on associate membership yet. Officials and lawmakers are still discussing what such a status would mean. EU diplomats have also expressed uncertainty about the proposal because von der Leyen announced it before a detailed legal framework had been created.
The idea has drawn attention from leaders in the EU, including German MEP Tobias Cremer who supports closer ties. The overall goal is to create a more stable and strategic relationship between Canada and Europe in the face of global trade instability.
The U.S. has been a major trading partner for Canada, but recent disputes have made Ottawa reconsider how dependent the country should remain on the American market. Carney’s government has said it wants to diversify exports and develop stronger relationships with other reliable partners.
Carney’s visit to the European Parliament was part of a larger effort to show that Canada is open to new alliances. Carney attended von der Leyen’s State of the European Union address on September 16 and then delivered his own formal address to the European Parliament on September 17.
The idea of associate membership is not something that can be easily added to EU treaties and would require significant political and legal work. Carney has stressed that the final name of the arrangement matters less than what Canada and Europe can accomplish together.
The EU and Canada are still working on how to move forward with this new form of cooperation. Both sides agree that the partnership will require time, effort, and careful planning to make it work.
The long-term aim is to build a stronger economic and strategic relationship between Canada and the European Union.
IMAGE: Mark Carney Dati Bendo / European Union 23 June 2025 CC4