Under Trump's tariff pressure, "banding together for warmth"? EU proposes making Canada the first "associate member country"

According to Zhitong Finance APP, European Commission President Ursula von der Leyen has proposed that Canada become the European Union's first "associate member." Von der Leyen extended this invitation during a speech in Strasbourg, France, on Wednesday, with Canadian Prime Minister Mark Carney attending the event. Von der Leyen stated: "In this new world, we must urgently reimagine our partnerships and build global alliances to enhance our resilience and safeguard our democratic systems. I look forward to working with you to open the door for Canada to become the EU’s first associate member."

By establishing a tailored status specifically for Canada, the EU as a trading bloc is sending a strong signal that even after the economic powerhouse of the UK exited due to Brexit, the EU can further expand beyond its current borders and reshape itself.

However, what this proposal will mean in practice is another matter, and negotiations could take years. Notably, this also offers the UK a path to restore its relationship with the EU, although Canada will be the first to define what “associate member” status truly entails.

Becoming a full EU member requires a lengthy accession process, accompanied by a range of rights such as access to the single market, as well as obligations related to finance, taxation, and law. No precedent currently exists for associate membership. Earlier this year, proposals to offer Ukraine a “lightweight membership” faced strong opposition from many member states.

However, countries like Iceland, Norway, Liechtenstein, and Switzerland have established special arrangements with the EU in areas such as the free movement of goods and people. Iceland, two weeks ago, rejected reopening negotiations with the EU for full membership.

Earlier this year, Carney warned that the "rules-based international order" is effectively dead and has repeatedly called for so-called middle powers to unite against pressure tactics and intimidation from global economic giants. Previous reports indicated that these transatlantic allies are negotiating to form a new alliance to ensure mutual security.

Von der Leyen also discussed strengthening cooperation with Canada in manufacturing, technology, defense, and energy, referring to the Arctic region as a “flagship joint project” between the two sides.

After being hit economically by the US trade war, the Canadian government has made deepening relations with the EU and other partners a top priority. Following negotiations concluded last month, US President Trump imposed new 50% tariffs on $20 billion worth of Canadian imports, after which Prime Minister Carney responded swiftly with retaliatory tariffs on a roughly equivalent amount of US-made products. The US previously wielded its “tariff stick” against the EU as well; although a trade deal was reached in July last year, the agreement is widely seen as heavily favoring US interests.

According to informed sources, Canada is currently focused on completing the ratification process for the EU–Canada Comprehensive Economic and Trade Agreement (CETA). Negotiations on this agreement were completed ten years ago, but sources familiar with the discussions say that as of now, ten European countries have yet to formally ratify it.

Issues still to be resolved between Canada and the EU include harmonizing their respective approaches on the EU’s carbon border adjustment mechanism for imported goods, EU anti-deforestation regulations, and pesticide rules.

Earlier reports have stated that EU officials see potential in establishing a closer relationship with Canada than with the UK. The EU believes that Canada is successfully implementing a so-called “sovereignty agenda” in economic and defense affairs—a move that could serve as a reference for the EU’s own efforts to reduce reliance on foreign countries. Moreover, Canada does not carry the Brexit legacy that burdens the UK.

Unlike the UK, Canada has already been admitted to participate in the SAFE program—a €150 billion ($173 billion) EU defense procurement loan project.

Informed sources said that Canada and the EU expect to make progress before a summit scheduled to be held in Montreal in October. At that time, the two sides may sign a digital trade agreement that is currently under preparation. Von der Leyen stated: "Both Europe and Canada believe in democracy. Power does not belong to the strongest, the richest, or the loudest voices."