Canada and EU Drop Associate Membership Idea While Deepening Ties

Canada and the European Union agreed on "ever closer association" in a joint declaration but removed the contentious idea of Canadian associate membership in the bloc. The document, seen by Reuters, is due to be made public on Friday. It was drafted ahead of a summit in Montreal hosted by Canadian Prime Minister Mark Carney, starting Thursday. The declaration says work to define the relationship will continue until another summit next year.

Division inside the EU

European Commission President Ursula von der Leyen floated associate membership six weeks ago, and it became a divisive issue in talks among EU countries on the declaration. Diplomats said a group led by Germany argued it could not endorse a concept with no legal status that had not been fleshed out. There is no precedent or legal definition for an EU associate member. An earlier draft had referred to Canada as an associate member at least twice.

What the declaration contains

The text includes a joint initiative to improve connectivity between Europe, Canada and Asia through new subsea cable infrastructure. It also proposes a joint feasibility study on Canadian liquefied natural gas exports to Europe and enabling young Canadians and Europeans to work across the Atlantic. Leaders reaffirm their commitment to a rules-based international order and say they "deeply regret" US sanctions on the International Criminal Court, based in the Netherlands.

Link to relations with the US

Closer ties with Europe are part of Carney's strategy to reduce Canada's economic and security reliance on the United States since President Donald Trump imposed tariffs on Canadian goods. Canada sends nearly 70% of its exports to the US, while the EU accounts for about 9% of its total trade. Trump earlier called the associate membership proposal "laughable" and suggested the US might stop trading with Europe "on many things" if he saw it as a "hostile act". Carney said names matter less than the difference the deal makes to Canadians' lives, and that formal negotiations will take another year.

Julian Karaguesian, a former adviser at Canada's Finance Ministry, called the summit "a bit of a show" and said Canada's effort is ill-defined. Trade lawyer Barry Appleton described the statement as "highly provocative" toward Washington. The White House said US and Canadian trade officials are talking.