Canada looks beyond America with plans for ‘unique alliance’ with EU
Canada is pursuing a "unique alliance" with the European Union as Prime Minister Mark Carney looks to deepen economic ties beyond the United States amid an escalating trade war with Washington.
Speaking at the Toronto International Film Festival, Carney dismissed reports that Canada was considering becoming an "associate member" of the EU, saying Ottawa instead wants to forge a new kind of partnership with the 27-nation bloc.
"We're not looking to become a member of the European Union," Carney said. "What we are looking — and will begin discussions for — is a unique alliance between Canada and the European Union."
The Wall Street Journal reported that European and Canadian officials had discussed a new associate status that could effectively expand the EU's economic boundaries. The Globe and Mail separately reported that the EU raised the idea rather than Carney and that any formal label remained premature.
Talks focus on easing the movement of goods, services, and specialized workers in critical sectors, including energy, artificial intelligence, defense, and critical minerals. Officials have also discussed cooperation on subsea cables, cloud storage, data centers, satellite networks and infrastructure to export Canadian energy to Europe.
Carney has also discussed visa-free travel and work access with European leaders, including French President Emmanuel Macron.
The prime minister is due to travel to France and Britain next week, with plans to address the European Parliament in Strasbourg and meet Macron on September 20.
The push toward Europe comes as Canada's relationship with its largest trading partner deteriorates.
After trade negotiations broke down on August 21, Washington imposed 50 percent tariffs on roughly $20 billion of Canadian exports. Canada retaliated with its own levies, while the U.S. moved to restrict some Canadian imports and companies.
President Donald Trump escalated his rhetoric Sunday, calling Canada "the worst country to deal with" and claiming its leaders were "dying to make a deal."
"They've ripped off our country for years," Trump told reporters aboard Air Force One.
Trump also said additional tariffs on Canadian cars, trucks and auto parts would take effect January 1 as his administration seeks to move manufacturing to the U.S.
Against that backdrop, Carney is hosting the Canada Investment Summit in Toronto, bringing together about 300 executives and senior leaders from investment firms overseeing more than $120 trillion in assets.
Carney is pitching Canada as an investment destination in its own right rather than simply a gateway to the U.S. market.
"Canada is about so much more than being next to the United States," Carney said. "We have what the world wants."
Pointing to Canada's natural resources, critical minerals, skilled workforce and trade access to 1.5 billion consumers, he added: "If they wanted to go to the United States they would go to the United States."
Carney has also sought to contrast Canada with Washington's increasingly volatile trade policies, telling investors they would find "a country that respects rule of law and a country that is reliable."
"That combination is pretty rare in the world," he said. "And it's an attractive combination."
The summit aims to attract investment into Canadian energy, critical minerals, advanced manufacturing, defense and technology projects.
BlackRock CEO Larry Fink and Blackstone President Jon Gray are among the speakers, while former Conservative Prime Minister Stephen Harper is scheduled to deliver the closing address.
Carney will then head to Europe as his government seeks to accelerate Canada's economic pivot across the Atlantic.
