What would EU ‘associate’ status mean for Canada?

Could this endanger Canada’s economic relationships with the US? 

After US-Canada trade talks ended last month, President Donald Trump imposed 50 per cent tariffs on US$20 billion of Canadian goods, and Carney retaliated against roughly the same value of US products. Getting closer to the EU would help Carney pursue what his government describes as a sovereignty agenda aimed at reducing foreign dependencies.

But Canada’s deep economic integration with the US, including interwoven cross-border supply chains, could force some difficult choices for Ottawa, including in areas where EU and US product safety and other standards diverge. 

After the negotiations with Washington fell apart in August, Carney said one of the sticking points was that the US wanted a say in future trade deals that Canada might sign. That was an unacceptable constraint on Canada’s right to make its own decisions, he said. 

It’s also clear the Trump administration is interested in securing more of Canada’s vast natural resources, including oil and minerals, and it might not look favourably on any deal that guarantees Europe improved access to those raw materials. 

Canada-EU trade has been growing and equalled C$134 billion (US$96 billion) in goods last year, according to a research paper from Canada’s Library of Parliament. Services added another C$58 billion. That’s still a fraction of the country’s trade with the US, which was well over US$800 billion last year.

How quickly could Canada join the EU as an associate member? 

As it would be a new kind of relationship, it’s not clear what the next steps would be to formalise Canada’s associate membership or whether it would come with similar obligations to full membership. 

In the first instance, EU member states will need to take stock of von der Leyen’s suggestion. As head of the European Commission, the EU’s executive branch, she has the power of initiative. 

But EU proposals on enlargement must also be approved by the European Parliament and the council of the EU, representing member states. Full membership of the EU has to be unanimously accepted by all members. 

Leaders will have an incentive to make tangible progress when they meet for an EU-Canada summit in Montreal in October.