The European Union is considering a new form of relationship with Canada that could make Ottawa the bloc’s first associate member, marking a potentially significant shift in the way Brussels engages with countries outside the EU.
European Commission President Ursula von der Leyen made the proposal directly to Canadian Prime Minister Mark Carney on Wednesday, calling for closer economic and security cooperation between the two sides at a time when both Canada and Europe are reassessing their dependence on the United States.
“I would like to work with you on opening the door for Canada being the first associate member of the EU,” von der Leyen told Carney during her annual state of the European Union address.
Carney, who was present for the speech, received a standing ovation from European lawmakers.
He is scheduled to address the European Parliament on Thursday.
The proposal does not amount to a Canadian application for EU membership, and the details of what associate membership would entail remain unclear.
But the announcement represents a significant expansion of the relationship between Ottawa and Brussels, which already have a broad free-trade agreement.
Von der Leyen said the EU and Canada should build on their existing Comprehensive Economic and Trade Agreement, or Ceta, and create what she called an “alliance for the future”.
The objective, she said, would be to establish “a common prosperity and economic security space”.
Canada and EU seek a broader strategic partnership
The proposed relationship would extend well beyond trade.
Von der Leyen said the EU and Canada could deepen cooperation in advanced manufacturing, technology, defence production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.
“This is a partnership not against anyone else, but for our common strength,” she said.
“In short, we want to bring the relationship with Canada to the highest level possible.”
The European Commission chief also framed the proposed partnership as one based on political values as well as economic interests.
“Above all, dear Mark, Europe and Canada believe in democracy,” von der Leyen said.
“We believe that power does not belong to the strongest, the richest or the loudest, but to all of us. That democracies have the freedom to choose with whom to work.”
The remarks come as both sides confront a changing transatlantic relationship.
Canada is engaged in a prolonged trade dispute with the US under President Donald Trump, while European governments have been seeking to strengthen their own economic and defence capabilities amid uncertainty over Washington’s approach to NATO and Ukraine.
Trump’s trade policies accelerate Canada’s diversification push
For Ottawa, closer ties with Europe offer a potential way to reduce Canada’s reliance on its southern neighbour.
The US currently accounts for more than 70% of Canadian goods exports, with annual trade worth more than $300 billion.
Canada has therefore been particularly exposed to changes in US tariff policy.
The relationship has also been strained by Trump’s repeated comments about Canada becoming the 51st US state.
The remarks have contributed to a broader reassessment in Ottawa of Canada’s economic and strategic dependence on Washington.
Carney has previously described Canada’s desired relationship with Europe as a “unique security and economic alliance”, while stopping short of calling for full EU membership.
Speaking to reporters on Sunday, Carney said Canada was not “looking to become a member of the European Union”.
Instead, he said Ottawa wanted to explore a “unique alliance” with the bloc.
That distinction is important because full EU membership would require Canada to undertake a far more extensive political and legal integration with the bloc.
Associate membership, by contrast, could potentially offer a framework for deeper cooperation without requiring Canada to join the EU’s political institutions.
Existing trade ties provide a foundation
Canada and the EU already have an extensive trading relationship through Ceta.
About 90% of trade between Canada and the EU is tariff-free, although the agreement has yet to be fully approved by 10 of the EU’s 27 member states.
Trade between Canada and the EU reached about 130 billion euros ($150 billion) in 2025, making Europe Canada’s second-largest trading partner by a substantial margin behind the US.
Carney has frequently described Canada as “the most European non-European country”, reflecting the country’s longstanding cultural, political and security ties with European nations.
The proposed associate membership could build on those existing arrangements while giving both sides a broader framework for cooperation.
There are already examples of differentiated relationships between the EU and non-member countries in Europe.
Switzerland, for instance, maintains extensive ties with the bloc through a series of bilateral agreements that provide access to parts of the EU single market and the Schengen area.
However, Canada’s geographical position and existing relationship with the US would make any potential arrangement distinct from Europe’s existing models.
Europe also wants to reduce strategic dependence
The proposed partnership reflects interests on both sides of the Atlantic.
Holger Schmieding, chief economist at Berenberg, described von der Leyen’s proposal as a significant development.
“I think this is a big step, indeed,” Schmieding said in an interview with CNBC’s “Squawk Box Europe”.
“Europe is trying to openly form new partnerships or deepen partnerships with all countries in the world that are sort of like-minded,” he said.
Schmieding said the strategy was not necessarily directed against the US, but was aimed at reducing Europe’s dependence on both the US and China.
“It is not necessarily against the US, but it is clearly in favor of making us less dependent on the US and less dependent on China, and that deeper partnership with other countries, like-minded democracies, is actually something we see in the economic re-arm,” he added.
For Europe, Canada brings significant natural resources, energy potential, critical minerals and expertise in areas such as technology and advanced manufacturing.
Canada also has strategic importance in the Arctic, an increasingly important region for security, energy and competition over natural resources.
For Canada, the EU represents a large consumer market and an additional source of investment, technology and trade.
Carney’s ‘middle powers’ strategy
The announcement also fits into Carney’s broader argument that middle powers need to strengthen cooperation as the global order becomes less predictable.
Speaking at the World Economic Forum in Davos earlier this year, Carney said the international system that emerged after the Cold War was facing a “rupture, not a transition”.
He argued that “middle powers must act together because if we’re not at the table, we’re on the menu.”
The proposed EU-Canada partnership provides a concrete example of that approach.
A Wall Street Journal report published Saturday said Carney had instructed a special envoy to explore closer ties with Europe following Trump’s tariff measures.
The discussions were reportedly focused on arrangements “short of full membership in the EU or its common market”.
That distinction suggests Ottawa’s immediate objective remains economic and strategic diversification rather than abandoning its relationship with Washington.
Associate membership could open new opportunities
The precise benefits of associate membership have yet to be established, meaning it is too early to determine how far the proposal could go.
Potential areas of cooperation could include greater access to European markets, expanded investment flows and closer coordination on defence and strategic industries.
Analysts have also pointed to possible implications for Canadians seeking to work, travel or retire in Europe.
Canadian citizens already have visa-free access to the Schengen area for short tourist visits of up to 90 days, although longer stays generally require additional permits.
A deeper relationship could eventually make it easier to establish broader arrangements governing movement, investment or professional activity, although such changes would require negotiations and agreement among EU member states.
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