Canada hoping to become EU’s first 'associate member' in deal

Canadian Prime Minister Mark Carney is hoping to wrap up an unprecedented deal with the European Union by June to make Canada the bloc's first "associate member".

Mr Carney and EU leaders launched what they called an "Alliance for the Future" at the end of a two-day Canada-EU summit in Montreal where they agreed to several initiatives centred on digital trade, critical minerals and artificial intelligence among others.

"Today we move toward associate membership for Canada, and we launch a new alliance for the future,"

Mr Carney said.

US President Donald Trump's trade war and persistent threats have accelerated efforts by Canada and Europe to reduce their dependence on Washington and strengthen their economic and security ties.

"What brings us together goes far beyond geography. We see the world through the same eyes," European Commission President Ursula von der Leyen said.

"These headwinds won't stop blowing. This change is permanent."

Mr Carney said the alliance would help Canada and Europe withstand economic pressure and make their own decisions rather than be dictated to by more powerful countries.

Mr Trump has threatened tariffs on Europe if he considered the proposed arrangement unfriendly.

Alliance aims to reinforce sovereignty

Mr Carney did not directly say whether the US could eventually be invited to join the alliance, but insisted the arrangement was not retaliatory.

"It is about reinforcing sovereignty. Why? So we can live our lives as we choose, our people can live their lives as they choose and have the full freedoms that people enjoy in the European Union and in Canada," Mr Carney said.

"It's not against anything, it's for,"

he said.

Mr Carney said Canadian Cabinet ministers and European commissioners would meet in March before he attends European Council meetings in June, where he intends to conclude negotiations on the proposed relationship. 

European Council President António Costa confirmed the invitation and said more details would be announced then.

Ms Von der Leyen said on Friday there was broad support for bringing Canada closer to the EU.

"On one thing I'm absolutely sure, having spoken about it in the last weeks, is the broad support of having Canada much, much closer to the European Union," she said.

A new economic partnership

Friday's negotiations in Montreal produced a new digital trade agreement between Canada and the EU to make it easier for businesses to sell across the Atlantic.

Canada also signed an agreement allowing the European Investment Bank to finance Canadian critical minerals projects, potentially opening a new source of investment for the country's mining industry.

Canada will also join a European supercomputing initiative which Mr Carney said could transform research. Europe's JUPITER supercomputer can complete in one day calculations that would take Canada's most powerful research computer six months, he said.

The two sides also concluded negotiations on an agreement intended to curb anti-competitive practices and lower prices for consumers.

Alliance could broaden

The Alliance for the Future could eventually broaden to include other like-minded countries, with Canada and the EU at its core.

Mr Costa said the two sides wanted to create a relationship unlike any seen previously with a country outside the bloc.

"Our relationship is so special that we want to create something new: to go beyond a simple association, everything short of full EU membership," he said.

The leaders also agreed to study the feasibility of exporting Canadian liquefied natural gas to Europe and explore new undersea cables connecting Canada, Europe and Asia.

Canada and the EU will begin talks on expanding Canadian participation in Europe's student exchange program.

The two sides also agreed on a new border security arrangement and pledged closer cooperation on defence, cybersecurity, Arctic security and countering foreign interference.

The US accounted for 71.7 per cent of Canada's merchandise exports in 2025. Mr Carney wants to double exports to other countries over the next decade.

AP