Carney will first attend the annual State of the Union address by European Commission President Ursula von der Leyen and will address the European Parliament himself the following day. Closer economic cooperation with Europe has become a key priority for his government.
This outreach comes at a time when Canada’s trade relationship with the US has severely deteriorated. Negotiations between the two countries broke down last week, after which Washington imposed import duties of up to 50 percent. Canada responded with retaliatory tariffs ranging from 15 to 50 percent on hundreds of American products.
Conflict with USA
Carney acknowledges that the confrontation has economic consequences for Canada but is unwilling to accept an unfavorable deal for his country. Washington has since announced new countermeasures. From the end of September, various Canadian dairy products, alcoholic beverages, and motorcycles will be barred from the US market. This threatens to further escalate the trade dispute between the neighboring countries.
Promotion
Against this backdrop, Canada is increasingly trying to diversify its trade across other parts of the world. Europe plays an important role in this strategy. Canadian Trade Minister Maninder Sidhu has been tasked with expanding trade with Europe and other countries outside the US. He is expected to attend an informal EU trade meeting in Dublin at the end of October.
More Than Just Trade
Brussels also wants to strengthen ties with Ottawa, as European relations with the United States are also cooling. The EU and Canada are working on plans for much broader cooperation. This should not be limited to trade but also cover security, supply chains, and critical raw materials. Additionally, discussions are underway on cooperation in areas such as defense, space exploration, and scientific research.
The two parties are not starting from scratch. Canada and the EU already have extensive trade agreements and cooperate in other fields. EU Trade Commissioner Maroš Šefčovič recently spoke with his Canadian counterpart about an agreement on digital trade. He described the existing free trade agreement with Canada as an example of cooperation from which both partners benefit.
Joining the EU
A Canadian membership in the European Union is not (yet) on the table, although it is being discussed on both sides of the Atlantic. Ottawa and Brussels are exploring how to cooperate as closely as possible without membership.
Prime Minister Carney frames this Canadian policy within a broader search for collaboration among medium-sized countries. Earlier this year, he called on such countries to cooperate more closely in response to economic and political pressures from major powers. Due to the conflict with Washington, this policy now also has a concrete trade dimension: Canada is actively seeking closer ties with Europe.