EU offers Canada chance to become first 'associate member' in wake of Trump's trade war

The European Union wants Canada to become the block's first "associate member", as the country's trade war with Donald Trump escalates.

Speaking on Wednesday, European Commission President Ursula von der Leyen told Canadian Prime Minister Mark Carney during her annual State of the European Union address: "I would like to work with you on opening the door for Canada being the first associate member of the EU."

Mr Trump's tariffs and repeated talk of making Canada the 51st state have pushed Canada to seek closer economic and security ties with Europe.

Mr Carney has called for a "unique alliance" with the EU as Canada seeks to reduce its heavy dependence on US trade.

Ms von der Leyen said Canada and the EU would build on their existing free trade agreement, known as CETA, with a broader "alliance for the future" aimed at creating "a common prosperity and economic security space".

Canada has retaliated against US tariffs and rejected trade terms Mr Carney says would weaken its sovereignty.

Ms von der Leyen emphasised the need to maintain European independence in various sectors, including energy, raw materials and clean technologies.

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In her annual speech to the European Parliament in Strasbourg, she said strong partners like Canada would help achieve these goals.

"We want to bring the relationship with Canada to the highest level possible," she said.

Ms von der Leyen said the closer relationship was not just about trade, but also in shared democratic values.

"Europe and Canada believe in democracy," she said.

"We believe that power does not belong to the strongest, the richest or the loudest, but to all of us. That democracies have the freedom to choose with whom to work."

Ms von der Leyen said the expanded partnership would cover advanced manufacturing, technology, defence production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cyber security and economic security.

"This is a partnership not against anyone else, but for our common strength," she said.

Mr Carney is due to address the European Parliament on Thursday.

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In a closely watched speech at the World Economic Forum in Davos in January, Mr Carney urged middle powers to work together to increase their leverage in an era of great-power rivalry.

He said: "When we only negotiate bilaterally with a hegemon, we negotiate from weakness. We accept what is offered.

"This is not sovereignty. It is the performance of sovereignty while accepting subordination."

The EU has taken a different approach with the US.

It reached a trade agreement that set a 15% US tariff ceiling on the vast majority of EU exports, while Europe eliminated tariffs on US industrial goods.

(c) Sky News 2026: EU offers Canada chance to become first 'associate member' in wake of Trump's trade war