Canadian Prime Minister Mark Carney on Friday laid out his vision for Canada becoming an “associate” member of the European Union as he moves to reduce Canada’s reliance on the U.S. amid a trade standoff with Washington.
Closing out a two-day E.U.-Canada summit in Montreal, Carney told reporters: “Today, the European Union and Canada are launching the ‘Alliance for the Future,’ a new partnership of nations that will leverage our strategic capabilities and a variable geometry of like-minded nations to address common issues.” He noted that the alliance will focus on “increasing our collective sovereignty and resilience in areas such as AI, energy, critical minerals, quantum, and beyond.”
In parallel, Carney continued, the E.U. and Canada are working toward “the deepest possible partnership, short of accession, because of our geography, with Canada becoming the European Union’s first ‘associate’ member. In the coming months, we will determine the full substance, scale, and scope of this new form of membership.” Carney said he plans to attend a meeting of European leaders in June to conclude negotiations on the proposed relationship.
European Commission president Ursula von der Leyen announced her plan for Canada’s first-of-its-kind membership to mixed responses last month. While both von der Leyen and Carney referred to an “associate” membership throughout the summit, the term notably does not appear in the final statement of the E.U.-Canada summit. Instead, the joint statement pledges to “work to define by the 2027 Canada-E.U. summit the concept of an ever-closer association of Canada to the E.U., short of full membership itself.”
Carney’s forging of international ties comes after talks between Washington and Ottawa collapsed in August, leading to a trade standoff. Canada’s retaliatory tariffs came into effect last month, matching the economic pressure imposed by the U.S. The White House has since lifted tariffs on some Canadian goods. Trump, meanwhile, has repeated his threats to annex Canada and make it the “51st state.” That, on top of domestic separatist movements in some Canadian provinces, have placed added strain on Carney to maintain his “Canada Strong” strategy and establish trade and security ties away from the U.S.
In Montreal, von der Leyen said the broader E.U.-Canada alliance would go beyond Canada’s potential associate membership, allowing for ambitious economic opportunities. Carney added that the partnership would hopefully provide opportunities for young Canadians to live, travel, and study in Europe.
“Canada cannot become a full-fledged member of the E.U. because of geography, but we both want to bring our relationship to the highest level possible,” von der Leyen said in a speech Thursday. “This is why we are discussing the idea of Canada becoming the first associate member of the European Union.”
Still, there has been reported pushback and uncertainty from some European officials.
Matthias Luttenberg, the German ambassador to Canada, acknowledged there are worries about the potential new “associate” member label.
“If you come up with a new concept in the European Union, and you propose something, be it the Commission or somebody else, then of course it takes some time to reflect for all 27 member states,” Luttenberg told CTV on Tuesday, admitting “we have been a little surprised by the announcement, which doesn’t mean that we cannot agree on it.”
Paula Pinho, the European Commission’s chief spokesperson, told TIME Friday that “following the discussions at the summit this week, we will continue to work with the European Parliament, member states and the Canadians to achieve our common objectives.”
She added: “We have worked intensely with all our Member States on this and the basis for associate membership is clear in the summit text. We regret that we did not yet have complete unity from MS on the initial wording but we have a strong basis agreed and we are now working to flesh out the details of what this ambition looks like and how it will work.”
Carney, meanwhile, told reporters Thursday: “This new alliance is not a marketing exercise. The name doesn’t matter. What matters is that the complementarities of our two jurisdictions strengthen our [Europe and Canada’s] sovereignty.”
He continued: “Why does sovereignty matter in a dangerous and divided world? It allows us to withstand shocks. It means that we’re not held up by some country—or some technology company that wants to dictate how we’re going to live our lives.”
Earlier this year, Carney discussed a “rupture in the world order” and suggested that the U.S.-led international order was breaking down—his warning came against the backdrop of Trump threatening economic pressure to yield desired results.
When von der Leyen first invited Canada to work toward becoming an “associate” member last month, in what she described as an “urgent” reimagining of partnerships, Trump again threatened economic pressure. He called the proposal “laughable” and threatened to “put very serious tariffs or stop trading with Europe on many things” if such an idea were to go ahead.
But experts say Carney’s burgeoning international relationships—with the E.U., China, and elsewhere—have proven to be a strong move for the Canadian leader, despite threats from Washington.
“People believe in [Carney], as there are other trade partners that Canada can build something with, even if there is no substitute for the U.S.,” says Lori Turnbull, a professor of political science at Dalhousie University, acknowledging the integration of the Canadian and U.S. economies. The U.S. accounted for 72.5% of Canadian merchandise exports in 2025, according to the country’s annual trade report, making it Canada’s largest trading partner by a wide margin.
Confidence in Carney among the public was seemingly reflected last week, as over 75% of Albertans voted against a future referendum on independence, opting instead to remain part of Canada.
What is the status of the U.S.-Canada trade talks?
Officials from both Ottawa and Washington have pointed toward some progress in talks over the past week, yet the path to a trade deal remains unclear.
“We will have [a deal] when it suits Canadians,” Carney told reporters Wednesday, downplaying any suggestion of a trade deal being reached before the U.S. midterms on Nov. 3. “If those deals present themselves, we will pursue them, but we’re not at that position right now.”
Carney had previously indicated on Monday that trade talks with the Trump Administration had picked up, but said any progress was down to Washington moving closer to Canada’s demands.
“To the extent any progress has been made, it’s because the U.S. is coming closer to our position,” Carney told reporters.
Trump, however, has painted a markedly different picture. Addressing the crowd at a South Carolina rally on Thursday, he said that Canada “is learning their lesson” amid the trade conflict, and remarked how Ottawa has been “treating [the U.S.] extremely nicely lately.”
At a rally last weekend, Trump insisted the trade dispute would be “settled pretty soon,” but did not offer specific details.
A spokesperson for Dominic LeBlanc, Canada’s Internal Trade Minister, told TIME Tuesday that “Canada remains in constructive dialogue with our U.S. counterparts on a range of priorities” and said Ottawa is ready to “work constructively and in good faith towards a more mutually beneficial trading relationship.”
A White House official told TIME Wednesday that U.S. Secretary of Commerce Howard Lutnick and U.S. Trade Representative Jamieson Greer “have had discussions with their Canadian counterpart in recent days.”
Reuters, citing two U.S. and four Canadian sources, reported this week that negotiators across both sides are working on a deal to ease U.S. tariffs on Canadian steel and autos.
TIME has reached out to the White House and Carney’s office for comment.
According to the Royal Bank of Canada, auto trade between the U.S. and Canada is worth $100 billion. After talks collapsed in August, Trump threatened to raise U.S. tariffs on all cars, trucks, and automotive parts from Canada to 50% starting Jan. 1, 2027. Honda executive Jennifer Thomas warned Tuesday that should a hike like this come into effect, it “really would be catastrophic for the entire industry.”
For any deal to progress, Carney will need to secure protections regarding the vital industry, experts tell TIME.
“The Prime Minister is not going to be able to get a deal that Premiers will accept if there’s still these major tariffs on major industries,” says Turnbull.
But progress may be difficult, trade experts add, given how long the standoff has stretched on.
Madeline Chalecki, an assistant director of trade at the Atlantic Council’s GeoEconomics Center, says Washington and Ottawa both “need to announce a win” as they’ve been “locked in this trade war for so long.”
“Tensions have risen to the point where neither side is going to be happy if the other one comes out the winner,” she insists.
The post Carney Sets Target for E.U. ‘Associate’ Membership Amid U.S.-Canada Trade Standoff appeared first on TIME.
