EU Opens Door for Canada to Become First Associate Member

European Commission President Ursula von der Leyen said the European Union was opening the door for Canada to become its first associate member — a position that the bloc would have to create from scratch.

Von der Leyen's comments came during her annual speech at the European Parliament in Strasbourg, France, while Candanian Prime Minister Mark Carney was in attendance.

This comes days after the Wall Street Journal reported that Carney was exploring an "associate membership" with the bloc, a position that does not currently exist.

Earlier this week, Carney responded to the story, saying he sought a "unique alliance" with the bloc and not a membership.

"Partnerships are a strategic choice for Europe. But they also respond to the fracture in the international rules-based system," von der Leyen said in her annual State of the European Union address.

"We see the world with the same eyes: from AI to climate change, from the Arctic to geopolitics. And we have stood together: on Ukraine, on defense, on raw materials and on supply chains. But above all ... Europe and Canada believe in democracy," she said.

The EU and Canada, which have already grown close amid conflicts and trade wars, are looking to partner with each other to diversify from China and the United States respectively.

Von der Leyen warns against an 'openly hostile world'

Von der Leyen called for an independent European Union amid an "openly hostile world," in her speech on Wednesday.

"'It was the best of times, it was the worst of times' — this is how British author Charles Dickens described Europe in the days of the French Revolution, and it is also a fair description of the world we live in," she said, beginning her address.

"The state of our union is the strongest it has ever been. The state of our union can also feel as precarious as it has ever been," she said.

Von der Leyen warned against "an openly hostile world" and "frayed relationships" while speaking of Russia's war against Ukraine and not directly mentioning the EU's increasingly strained relationship with the US.

"A territorial war of aggression is raging on our continent; others have erupted nearby. A fight for industrial capacities is shaping global competition. And a battle of narratives is seeking to weaken confidence in Europe," von der Leyen said.

Von der Leyen announces new European corporation on critical raw material

Von der Leyen, now in her second five-year term as commission president, stressed on the need to maintain European independence in various sectors including energy and raw material.

"We still have too many dangerous dependencies" she said adding the EU was still 80% dependent on China for many critical raw materials.

"We need to urgently procure and build up reserves. No country can do this on its own so we need to think differently," she said, hinting at global partnerships without mentioning nations.

"This is why we will establish a new European corporation on critical raw material. It will help us obtain and stockpile what we need ... Not only our industry depends on this but also our independence and security," she said.

As for China, the president warned the bloc would "use all tools at our disposal to rebalance our relationship".

"Our trade deficit with China is now one billion euros a day. It has reached a tipping point. Some say the second China shock is looming. But it's already here," she said. "Words are good. But deeds are better."

Future depends on how EU tackles climate change, AI

Speaking of challenges, von der Leyen said the future of the 27-nation bloc depends on how it manages climate change and artificial intelligence.

"Our future prosperity and security will greatly depend on how we manage the tipping points of our time: climate change and AI," she said, promising a new "heatwave plan" following Europe's deadly summer, and a push for the bloc to help "pace the frontier" of AI development.