CANADA MOVES CLOSER TO EUROPE AS TRADE TENSIONS WITH US INTENSIFY

Sun 13 September 2026:

Ottawa explores closer EU ties, including possible “associate membership”, as it seeks to reduce dependence on Washington

Canada is stepping up efforts to strengthen its economic and strategic relationship with Europe as trade tensions with the United States reach their most serious level in decades, according to a Sunday report by the Wall Street Journal.

Prime Minister Mark Carney has been engaging with European leaders in France, Germany and Italy as Ottawa explores ways to build closer ties with the European Union without seeking full membership, the report said.

Canadian officials are considering an “associate membership” arrangement that could provide greater access to the EU’s $21 trillion single market, particularly in key sectors including energy, artificial intelligence, critical minerals and defense.

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Greenland and Iran War Add Momentum

Two major developments have reportedly increased support among some European leaders for stronger relations with Canada: US President Donald Trump’s efforts to gain control of Greenland and his war with Iran.

Carney has broadened his diplomatic outreach to European leaders who have traditionally maintained closer relations with Trump, including Italian Premier Giorgia Meloni. He has also continued regular engagement with French President Emmanuel Macron and Finnish President Alexander Stubb.

By the summer, Canadian and European officials had intensified negotiations through several diplomatic channels. During preliminary G7 discussions in France, they identified 11 areas where cooperation could be expanded, with the goal of reducing reliance on US technology, defense equipment and trade.

Canada Proposes Broad Economic Cooperation

Carney’s meeting with Macron in Paris ahead of the G7 summit in Evian in June reportedly caught French officials off guard because of the speed and scale of Canada’s proposals.

At the same time, Carney maintained frequent contact with German Chancellor Friedrich Merz as Canada and Germany concluded negotiations over Ottawa’s planned $25 billion purchase of German submarines.

Potential areas of cooperation include easier movement of workers, expanded academic and research exchanges, and joint efforts involving data centers, undersea cables, cloud infrastructure and satellite networks.

Canada is also looking to expand its energy relationship with Europe. Ottawa is exploring infrastructure that could facilitate the export of Canadian natural gas to European markets while helping reduce European dependence on Russian energy supplies.

Ottawa Seeks to Diversify Beyond US

The push reflects Canada’s broader effort to reduce its longstanding economic reliance on the United States. Around two-thirds of Canadian exports cross the US border, making diversification a significant challenge for Ottawa.

Carney, a former governor of the Bank of England, is betting that stronger economic and strategic links with Europe could give Canada greater resilience against pressure from Washington while gradually reshaping the country’s traditional economic orientation toward the US.

European governments, however, remain cautious about the proposal. Some officials are reportedly concerned that a major transformation in Canada-EU relations could create additional friction with Washington at a time when transatlantic relations are already under strain.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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