EU opens door to unprecedented ‘associate member’ status for Canada amid US trade spat

European Commission President Ursula von der Leyen on Wednesday proposed opening the door for Canada to become the European Union’s first “associate member,” a significant step that could bring Ottawa substantially closer to the bloc as its trade dispute with the U.S. shows no signs of abating. 

Speaking in Strasbourg during her annual State of the European Union address, von der Leyen addressed Canadian Prime Minister Mark Carney, who was in the chamber, and called for a major expansion of economic, technological and security cooperation between Canada and the EU.

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen said, drawing a standing ovation from EU lawmakers before walking over to embrace Carney.

BILLIONAIRE WARNS ‘EVIL EMPIRE’ WANTS TO ‘CRIPPLE TRUMP,’ CALLS OUT AMERICA’S NORTHERN NEIGHBOR

Von der Leyen said the two sides would move from their existing CETA trade agreement toward what she called an “Alliance for the Future,” aimed at creating a common prosperity and economic security space.

The proposed partnership would deepen cooperation for advanced manufacturing, defense production, energy, critical minerals, artificial intelligence, quantum technology, cybersecurity and the Arctic.

“We see the world with the same eyes,” von der Leyen said, citing shared positions on issues ranging from Ukraine and defense to supply chains and climate change.

“But above all … Europe and Canada believe in democracy,” she said. “This is a partnership not against anyone else, but for our common strength.”

The proposal comes as Canada seeks to diversify its trade away from its heavy reliance on the United States.

Carney has pledged to double Canada’s non-U.S. trade over the next decade following a breakdown in Canada-U.S. trade talks last month that triggered a series of tit-for-tat tariff measures.

Earlier this week, Carney — who is scheduled to address the European Parliament on Thursday — said Canada was seeking a “unique alliance” with the EU, but not membership.

He said more detailed discussions are expected to begin at the Canada-EU summit in Montreal in late October.

But the proposal still faces significant legal and political questions. The EU has historically resisted flexible alliances without a defined legal status. 

Speaking to Reuters on the matter, one EU diplomat expressed surprise at von der Leyen’s announcement, saying the proposal was too vague and warned that the Commission president was “overpromising and won’t be able to deliver.”

Deeper economic integration could also face longstanding trade obstacles. Mark Manger, a professor of political economy and global affairs at the University of Toronto, told Reuters that EU officials have been frustrated by Canada’s protection of its telecommunications and dairy sectors — issues that could complicate efforts to further deepen economic ties.

CLICK HERE TO GET FOX BUSINESS ON THE GO

It will ultimately be up to EU member states whether the proposal moves forward.

Reuters contributed to this report. 

Read More

​Latest Business News on Fox Business 36cd6e61-0948-575f-984c-74130b73290f, fbn, Fox Business, fox-business/markets/canada, fox-business/markets/europe, fox-news/fox-news-world/fox-news-global-economy/fox-news-trade, fox-news/fox-news-world/fox-news-global-economy, fox-business/economy, article 

​