Europe
2026.09.14 23:22 GMT+8

Carney seeks 'unique alliance' with EU as Canada's trade war with US intensifies

Updated 2026.09.14 23:22 GMT+8
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Canadian Prime Minister Mark Carney speaks to Canadian business leaders at the Canada Investment Summit welcome reception in Toronto, Sunday, Sept. 13, 2026. /Jon Blacker via AP

Canadian Prime Minister Mark Carney said on Sunday (September 13) he is exploring whether his country could become an "associate member" of the European Union.

EU officials say the bloc is open to the idea of granting Canada the unique status of associate membership, according to reports from The Wall Street Journal. 

The EU has never been flexible about membership rules, but Mark Carney reportedly instructed his special envoy in Europe to "scope out the most ambitious possibilities short of full membership". 

Carney will travel to the UK and France this week, and is due to address the European Parliament in Strasbourg.

Canada's escalating trade war with the US has added time pressure to these discussions. 

After trade negotiations between Ottawa and Washington broke down in late August, the US imposed tariffs on key Canadian goods including steel, aluminium and wood, as well as imposing an additional 50% levy on about C$28bn ($20bn) worth of Canadian goods. In response, Canada introduced tariffs of up to 50% C$28bn ($20bn) of American products. 

Tensions look set to continue, with Trump on Sunday calling Canada "the worst country to deal with" and reiterated his intention to impose new tariffs on cars, trucks and autoparts from Canada beginning January 1.

Canada has historically relied heavily on its southern neighbour for trade. 76% of Canada's exports go to the US, while less than 5% currently go to the European Union. However, according to the Wall Street Journal, plans being discussed by Ottawa and the EU could effectively shift the border of the trade bloc to include Canada. 

The paper reported that officials are exploring ways of allowing the free movement of goods, services and workers. Carney has regularly spoken with EU leaders about the possibility of letting Canadians live a work visa-free in the EU. 

There are also reportedly discussions around laying underwater cables, jointly building data centres, cloud storage and new satellite networks, reflecting a drive by both parties towards digital sovereignty and less reliance on American tech companies.

Talking to reporters in Toronto on Sunday, Carney said Canada and the EU were natural partners. "We share the same values. We have the same priorities, and we have very complementary strengths. We're stronger together" he said.

However, forging closer ties between Canada and the EU will not be without its challenges. Past efforts to implement a modest trade deal between the two were met with fierce opposition within Europe. More than a decade after the EU-Canada Trade Agreements were introduced, 10 EU member countries have still not ratified the deal.

Overcoming these challenges is key to Carney's grander plan to build a "more independent, more resilient economy" for Canada. In the coming week, Carney will host over 100 global investors overseeing more than $72tn in assets to pitch them on Canada's energy and resource sectors and travel to the UK to meet the new Prime Minister, Andy Burnham.

Source(s): Reuters
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