Topline
Canadian officials are negotiating with the European Union for closer ties with the economic bloc in response to the breakdown of trade negotiations with the United States earlier this summer, the Wall Street Journal reported on Saturday—including potentially becoming an “associate member” of the union.
Canadian Prime Minister Mark Carney will address the European Parliament next week.
AFP via Getty Images
Key Facts
Although the EU is historically not known for allowing flexible membership arrangements with individual countries, European officials are reportedly open to Canada joining as an “associate member,” anonymous officials from both Canada and the EU told the Journal.
This could mark the largest reorientation of the Canadian economy in decades—the U.S. has long been Canada’s largest trading partner, with about 72% of exports going across the southern border in 2025.
The details of a potential deal are still being discussed, according to the Journal’s reporting, but it could lead to increased trade between the two, including potentially shipping fertilizer through the Arctic and building new natural gas pipelines, which could help Europe end its reliance on Russian natural gas.
A deal could also see the EU and Canada collaborate to lay new underwater cables, launch satellites and build data centers as people on both sides of the Atlantic grow cautious of U.S. tech companies.
Surprising Fact
Canadian Prime Minister Mark Carney has previous ties to Europe and the U.K. He studied at the University of Oxford and previously served as governor of the Bank of England from 2013 through 2020. According to the Journal’s reporting, he keeps in regular contact with top European officials like French President Emmanuel Macron, and the two have discussed plans to allow Canadians to live and work in Europe without visas. Carney is also reportedly seeking to join the EU’s study abroad program, which allows students to take classes in universities across borders.
What to Watch For
Carney is traveling to Europe next week with visits scheduled for Liverpool and Strasbourg. He is scheduled to address the European Parliament, attend the State of the European Union address and “meet with members of the European Parliament to strengthen Canada’s ties with the EU in trade, investment, and security,” according to the prime minister’s office. It is unclear whether Carney will announce any more official plans for seeking “associate member” status on this trip.
Key Background
The reported talks with the EU come as Canada remains embroiled in a trade war with the U.S., after Carney instructed Canadian negotiators to walk out of talks with their American counterparts in August. Both Canada and the U.S. have hit one another with reciprocal tariffs, and the White House has escalated the conflict in recent days with President Donald Trump banning some Canadian dairy, alcohol and other goods last week, and threatened to ban Canadian jet manufacturer Bombardier from selling foreign-built planes in the U.S.. Since taking office again in 2025, Trump has repeatedly threatened and mocked Canada as the “51st state,” and went as far as changing the official name of Lake Ontario to “Lake America” in August amid the trade dispute.
Further Reading
Mark Carney’s Audacious Bid to Make Canada an ‘Associate Member’ of the EU (Wall Street Journal)
What If Canada Joined the E.U.? (The New Yorker)
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