Highly dependent on exports to the US, Canada is seeking to expand its economic and strategic ties with Europe as it faces one of its most serious trade disputes with Washington in recent years.
Prime Minister Mark Carney discussed options for bringing Canada closer to the European Union without making the country a full member with the leaders of France, Germany and Italy. Ottawa’s agenda includes access to the European market, energy links and more comprehensive cooperation in strategic sectors.
Associate membership option under consideration
Canadian officials are considering an “associate membership” arrangement that could give the country closer access to the European Union’s $21 trillion single market. The plan is expected to cover the energy, artificial intelligence, critical minerals and defense sectors.
The talks could also address easier labor mobility, expanded research and university exchanges, and partnerships involving data centers, undersea cables, cloud infrastructure and satellite networks.
Deeper cooperation in 11 areas
During preliminary G7 meetings in France, officials from Canada and Europe focused on deepening cooperation in 11 areas aimed at reducing dependence on US technology, defense equipment and trade.
Carney’s meeting with French President Emmanuel Macron in Paris ahead of the G7 summit in Evian in June came as a surprise in terms of the scope of Canada’s proposals and the speed of progress. Carney has also maintained frequent contact with German Chancellor Friedrich Merz.
These contacts coincided with the conclusion of negotiations on Canada’s planned $25 billion submarine purchase from Germany. Carney has increased his contacts with Italian Prime Minister Giorgia Meloni while maintaining regular communication with Macron and Finnish President Alexander Stubb.
Ottawa seeks energy links with Europe
Canada is also working on infrastructure options that could deliver its natural gas to European markets. Ottawa aims for these links to help reduce Europe’s dependence on Russian energy.
Canada sends two-thirds of its exports to the US. Carney believes closer relations with Europe will strengthen Canada’s resilience against pressure from Washington and change the country’s long-standing US-centered economic orientation.
European governments, however, are approaching Canada’s proposals cautiously. Some governments are concerned that a rapid change in relations between Canada and the European Union could further strain ties with Washington.
