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The Economic Times
The Economic Times

In a historic first, Canada invited to become EU bloc’s associate member

European Commission President Ursula von der Leyen has invited Canada to become the European Union’s first “associate member”, as Brussels and Ottawa look to strengthen economic and strategic cooperation amid uncertainty in transatlantic trade.

“I invite Canada to be the first associate member of the EU,” von der Leyen said during her State of the Union speech on Wednesday.

EU treaties allow membership only for European states, making Canada ineligible for full membership. The proposed associate-member status could provide a new framework for closer cooperation between Canada and the 27-member bloc.

Von der Leyen also proposed expanding the existing Canada-EU trade relationship into a wider strategic partnership.

“We will move from CETA to an Alliance for the Future. To create a common prosperity and economic security space," she said.

The Comprehensive Economic and Trade Agreement, or CETA, was agreed in 2016 and has been provisionally implemented since 2017. It has reduced tariffs and created a framework for trade and investment between Canada and the EU.

Under the proposed alliance, cooperation could cover technology, defence, energy, critical minerals, batteries and the Arctic. Von der Leyen also mentioned artificial intelligence, quantum technology, cyber security and economic security.

The proposal comes as Canada and the EU seek to improve economic resilience amid changes in global trade. Canada has faced renewed pressure from the United States under President Donald Trump’s tariff policies.

Because of the close economic ties between Canada and the US, changes in American trade policy can significantly affect Canadian exports. Ottawa has therefore been seeking to expand its trade and economic partnerships.

Canadian Prime Minister Mark Carney has supported stronger economic and security ties with the EU. His appearance in the European Parliament on Wednesday reflected the growing political engagement between Canada and the bloc.

Carney received a standing ovation after European Parliament President Roberta Metsola introduced him as the guest of honour. He is scheduled to address the European Parliament on Thursday morning.

Canadian and European leaders are expected to meet in Montreal later in October. Trade, defence, energy, critical minerals, technology and Arctic cooperation are likely to be among the main issues at the summit.

The proposed associate-member relationship would form part of wider efforts by Canada and the EU to strengthen their economic and strategic ties as global trade partnerships continue to change.

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