WorldPosted at: Sep 16 2026 11:19PM


European Commission proposes making Canada EU's first 'associate member' amid strained ties with US

Brussels/Ottawa, Sep 16 (UNI) European Commission President Ursula von der Leyen on Wednesday proposed making Canada the EU's first "associate member", bringing both Ottawa and Brussels closer for greater collaboration on economy and security matters, as they seek to reduce dependence on the US market amid strained relations with Washington.
In her annual state of the union address, von der Leyen presented the proposal as part of Europe's response to a world where "old assumptions and relationships have frayed".
Addressing Canadian Prime Minister Mark Carney directly, she said democracies "have the freedom to choose with whom to work".
The proposed arrangement would go beyond the EU and Canada's existing trade agreement, with closer cooperation on defence industries, manufacturing, technology, energy and the Arctic.
The proposal comes after US President Donald Trump spent more than a year threatening Canada's economy and sovereignty, repeatedly calling for it to become the 51st US state and imposing steep tariffs.
The US has imposed tariffs of as much as 50% on some Canadian products, while further restrictions on Canadian dairy, alcohol and auto imports are due later this month.
The EU said it wanted to establish a relationship with Canada unlike any it has created before.
"We will aim to create a new form of partnership that has not existed until now," an EU spokesperson told Axios, describing the goal as "the closest imaginable form of association with a partner outside Europe".
The White House and the Canadian prime minister's office had not responded to requests for comment.
The EU already extends elements of its single market to Norway, Iceland and Liechtenstein, although Canada's proposed associate membership would likely be structured differently.
The single market provides for the free movement of goods, services, capital and people and requires participating countries to follow EU regulations.
Canada already has a major free-trade agreement with the EU that has removed tariffs on about 99% of goods.
That means the extent of any new arrangement would likely depend on whether it expands cooperation in areas such as services, regulation, investment and economic coordination.
Canada's trade with the US remains dominant, although its exports to the US fell 5.8% last year while exports to other markets increased 17.2%, according to the Canadian government. The US still accounted for 71.7% of Canadian exports.
Canada also holds resources and strategic assets important to both Europe and the US. It is the world's fourth-largest oil producer and sends more oil to the US than any other foreign supplier combined.
Natural Resources Canada said the country ranked among the world's five largest producers of 11 critical minerals last year.
Nearly half of Canada's territory extends into the Arctic, giving it strategic importance as melting sea ice opens new routes, as Russia continues to expand its military presence and China also increases its activities in the region.
Ottawa has also an established defence industry and is the first non-European country to join the EU's SAFE defence procurement programme, giving Canadian companies access to potential European defence contracts.
The proposed partnership is being closely watched as Canada considers how far it can reduce its dependence on the US economy. Trump has argued that his trade policies would strengthen American manufacturing, while the source notes that manufacturing jobs have fallen since he returned to office and that Canada is now buying fewer US goods.
Much remains unclear about the associate membership proposal.
Neither Carney nor von der Leyen has outlined whether Canada would gain access to the EU single market, which regulations it would be expected to follow, or whether Canadians and Europeans would gain rights to live, work or study across the Atlantic.
Carney is expected to address the European Parliament on Thursday. Canada will host the next Canada-EU summit in Montreal on October 29 and 30.
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