Canada is stepping up efforts to deepen its economic and strategic ties with Europe, as its relationship with the U.S. faces the worst trade tensions in decades, according to a Wall Street Journal report.
Canadian Prime Minister Mark Carney held talks with European leaders, including those in France, Germany, and Italy, exploring ways for Canada to forge closer ties with the EU without seeking full membership in the Union, the report states.
Canadian officials are considering the possibility of an “association agreement” that could provide increased access to the EU’s $21 trillion single market, particularly in strategic sectors such as energy, artificial intelligence, critical minerals, and defense.
Two developments—U.S. President Donald Trump’s efforts to take control of Greenland and his conflict with Iran—have, according to some European leaders, the case for closer ties with Canada. Carney has stepped up his contacts with leaders who are traditionally closer to Trump, including Italian Prime Minister Giorgia Meloni, while maintaining frequent contact with French President Emmanuel Macron and Finnish President Alexander Stubb.
By early summer, Canadian and European officials had already intensified their discussions through multiple diplomatic channels. During the preliminary meetings of the Group of Seven (G7) of the most developed industrialized nations in France, they identified 11 areas for deeper cooperation aimed at reducing dependence on the U.S. in technology, defense equipment, and trade.
During Carney’s meeting with Macron in Paris ahead of the G7 summit in Évian in June, French officials were reportedly surprised by the speed and scale of Canada’s proposals. At the same time, Carney was in frequent contact with German Chancellor Friedrich Merz, as the two countries finalized negotiations on Canada’s planned purchase of German submarines worth $25 billion.
The talks may also cover the easier movement of workers, the expansion of university exchanges and research collaboration, as well as cooperation on data centers, submarine cables, cloud infrastructure, and satellite networks.
Carney also seeks to strengthen Canada’s energy ties with Europe, including infrastructure that could allow Canadian natural gas to reach European markets.
The initiative reflects Ottawa’s effort to reduce the economy’s heavy dependence on the U.S. Canada sends two-thirds of its exports across the border, making diversification a major challenge.
Carney, who previously served as governor of the Bank of England, is betting that closer ties with Europe will help Ottawa withstand pressure from Washington while also reshaping its long-term economic orientation toward theUnited States.
However, European governments are taking a cautious approach to the proposal, as some worry that a dramatic shift in Canada’s-EU relations could further strengthen ties with Washington.
Source: CNA
