Canada seeks EU associate status

Canada accounted for 71.7% of its merchandise exports to the United States in 2025. Prime Minister Mark Carney and European Commission President Ursula von der Leyen met in Montreal on Thursday to reduce that dependency. They proposed making Canada the first associate member of the European Union.

The two leaders presented this move as a defense against economic coercion during the U.S. trade war. Von der Leyen stated that economic relationships once seen as stable are now tools of pressure. She noted that families pay the price when trade becomes a weapon, citing rising costs for cars and food.

Carney first warned of these threats at the World Economic Forum in Davos in January. He described the U.S.-led international order as breaking down. At the time, he urged middle powers to unite against coercion by more powerful nations. The Montreal summit serves as a test of that vision.

Von der Leyen said Canada and the EU would form the core of a new group called the Alliance for the Future. Other like-minded countries would be welcome to join. The alliance focuses on critical minerals, resilient supply chains, and defense.

The leaders plan to finalize an agreement on Friday. This deal will give Canadian companies, startups, and researchers access to Europe's network of 12 advanced supercomputers. It aims to strengthen cooperation on artificial intelligence.

They also announced plans to strengthen strategic supply chains. The goal is to encourage joint investment in industries critical to economic security. Officials hope to develop the broader partnership for possible endorsement in 2027.

Canada is currently the only non-European country in the EU's 150-billion-euro defense procurement program. This allows Canadian firms to join joint European military purchases. However, France is pushing for strict Made in Europe rules that could limit that access. Germany favors broader participation.

The value of EU imports of Canadian critical raw materials rose 62% last year. That total reached 3.3 billion euros, including lithium, cobalt, nickel, and graphite. The two sides are seeking closer cooperation to diversify these supply chains.

Trump suggested the arrangement could be a hostile act. He threatened tariffs on Europe if he considered it unfriendly. A senior Canadian official said the closer relationship reflects shared interests and is not directed against the United States.

Carney said the name of the partnership matters less than the benefits. He noted that any enhanced partnership would face a vote in Canada's Parliament. The summit ends with a focus on concrete economic and defense ties rather than formal membership.