Mark Carney pushes to make Canada associate member of EU amid trade war with US

Mark Carney is exploring European Union 'associate member' status for Canada as Ottawa seeks closer ties with Europe amid escalating trade war with the US.

In Short

• Canada seeks closer ties with EU amid US trade war
• PM Carney pushes for new 'associate member' status
• Discussions include visa-free movement and joint projects

A trade war with US President Donald Trump is triggering a historic realignment in Canada, with Prime Minister Mark Carney making an audacious bid to pull Ottawa closer to Europe and exploring a new "associate member" status with the European Union, according to The Wall Street Journal.

The Canadian PM has asked his special envoy to Europe to examine options for bringing Canada closer to the EU without pursuing full membership or joining the bloc's single market outright. European and Canadian officials are discussing what could become an unprecedented form of association between the 27-member bloc and a country outside Europe.

The proposal signals a major rethink in Ottawa after years of Canada tying its economic and strategic fortunes to a US neighbour that is now using tariffs and political pressure to squeeze its closest ally.

MARK CARNEY'S BOLD EUROPEAN PIVOT

Behind the scenes, Carney has spent months building support in European capitals, speaking regularly with Macron, Merz and Meloni and reaching out to leaders across Scandinavia.

The discussions have moved beyond traditional trade ties. Canadian and European officials are examining ways to integrate their economies more closely in areas including energy, artificial intelligence, defence and critical minerals.

One proposal under discussion could allow Canadian goods, services and workers in strategic sectors to move more freely into Europe, effectively creating closer links with the EU's roughly 21 trillion dollars single market.

Carney has also raised the possibility of Canadians being allowed to live and work in Europe without visas, according to two officials familiar with discussions with Macron, the Journal reported.

"Wouldn't it be lovely if Canada was the 28th state of the European Union rather than the 51st state of the United States?" Finnish President Alexander Stubb said, reflecting the increasingly close relationship between Ottawa and European capitals.

ENERGY, AI AND DEFENCE AT THE CENTRE

The proposed partnership could stretch well beyond conventional trade.

According to The WSJ, Canada and the EU are considering underwater cables connecting the two sides, joint data centres and cloud-storage infrastructure, new satellite networks and research partnerships. He is also pushing for greater Canadian energy exports to Europe, including infrastructure that could allow Canadian gas to reach European countries seeking alternatives to Russian energy supplies.

Other discussions involve Canadian critical minerals, fertiliser exports through Arctic routes and closer cooperation between universities and research institutions. Canada is also seeking participation in the EU's study-abroad programme, potentially giving Canadian and European students greater opportunities to study on opposite sides of the Atlantic.

Defence has emerged as another key area of cooperation, with Canada moving closer to European partners as its relationship with Washington deteriorates.

"This is tectonic change by working groups and bureaucracy. It's terribly unsexy but terribly consequential nonetheless," one Canadian official involved in the discussions told the Journal.

COULD TRUMP'S AMERICA LOSE CANADA TO EUROPE?

The European push is unfolding against the backdrop of a sharp deterioration in Canada-US relations since President Donald Trump returned to the White House in 2025. Trump has repeatedly threatened to make Canada the 51st US state, while the two countries have become embroiled in a major trade dispute involving tariffs on billions of dollars in cross-border commerce.

Carney has described the breakdown in relations with Washington as "a rupture, not a transition", warning that the changes could outlast Trump's presidency.

The Canadian Prime Minister is betting that closer ties with Europe can provide an alternative economic and strategic anchor.

"This is Canada turning from looking at itself as a North American nation to a trans-Atlantic nation," a senior Canadian official told The WSJ. "Canadians, we sound like Americans, we dress like Americans, but as a society we're much more European."

EUROPE SEES OPPORTUNITY -- BUT ALSO RISKS

However, it faces significant obstacles.

The EU has historically been cautious about creating special arrangements outside its established membership structures. Several European countries have still not ratified the Comprehensive Economic and Trade Agreement, or CETA, with Canada more than a decade after it was concluded.

European officials are also wary of offering Ottawa terms that could encourage other countries to demand similar arrangements. The experience of Brexit has made EU governments particularly sensitive to flexible forms of integration.

There are questions in Canada, too. Closer economic integration with Europe could require Ottawa to accept European regulations, open parts of its economy and potentially contribute financially to EU programmes. Domestic political resistance could emerge, particularly around sovereignty.

The economic challenge is equally significant. Europe may not be able to replace the enormous volume of Canadian trade with the US, which remains by far Canada's most important export market.

Still, European officials are beginning to see Canada as a test of whether the EU can emerge as a credible strategic alternative at a time when Washington is putting its traditional alliances under growing strain. For Brussels, the question is no longer simply how closely Canada can trade with Europe, but whether the bloc can offer a new home for democracies seeking to reduce their exposure to an increasingly unpredictable US.

Carney is expected to take that argument directly to the European Parliament, while Canada and the EU prepare new working groups to turn the political ambition into concrete agreements. If they succeed, Canada’s European pivot could become one of the clearest signs yet of how Trump’s America is reshaping the Western alliance -- by pushing a longtime US ally to look elsewhere.

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