Canada-EU Summit: Deepening Ties Amid US Trade Tensions and 'Associate Membership' Proposal

Canada is set to host a summit with the European Union from October 29 to 30 in Montreal, aiming to strengthen bilateral strategic and economic ties amidst a significant downturn in relations with the United States. The meeting is expected to focus on enhanced cooperation across a range of sectors including trade, technology, defence, energy, critical minerals, artificial intelligence, research, and financial services. This summit follows a September proposal by European Commission President Ursula von der Leyen to explore the possibility of Canada becoming the EU’s first “associate member,” a concept welcomed by Canadian Prime Minister Mark Carney.

This 21st Canada-EU summit is anticipated to build upon the Comprehensive Economic and Trade Agreement (CETA), which became effective in 2017 and has since eliminated duties on approximately 99 percent of imported goods between the two parties. European Council President Antonio Costa, who will attend alongside Carney and von der Leyen, stated, “In Montreal, we will take our partnership to the next level by launching our ‘Alliance for the Future’ to deepen our political, economic and institutional ties even further.” A joint statement is expected from the leaders.

The growing alignment between Canada and the EU appears to be influenced by policies enacted by US President Donald Trump, including substantial tariffs on both Canadian and European exports to the US. These measures have prompted Canada to seek strategies for reducing its economic reliance on the United States, a country that previously absorbed nearly 80 percent of Canadian exports. Trade talks between Ottawa and Washington, DC, faltered in August, leading to Trump imposing a 50 percent levy on $20bn of Canadian goods. Canada retaliated with equivalent tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics.

Both Canada and Europe are actively pursuing opportunities to diversify their economic partnerships beyond the US market. As stated by Carney’s office, “The EU brings market power, research depth, and manufacturing strength. Canada brings abundant energy, critical minerals, world-class capabilities in space, artificial intelligence (AI), and quantum, and one of the world’s strongest banking systems.” The summit aims to translate these complementary strengths into tangible benefits. Vina Nadjibulla, co-founder and CEO of the Centre for Strategic Statecraft, noted that while specific sector announcements are likely, the key challenge lies in converting political momentum into concrete deals and projects that yield economic results.

The EU has recognized Canada’s participation in its 150-billion-euro ($167bn) Security Action for Europe (SAFE) loan program, which supports defence procurement for EU member states. Canada is the only non-European country involved in SAFE, having concluded an agreement in February that grants Canadian firms preferential access to defence procurements financed by the program.

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