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BackCanada approaches the EU in a historic swing – leaving the US behind
Canada approaches the EU in a historic swing – leaving the US behind
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Dagens Nyheter50 minutes agoWorld2 min readView original

Canada approaches the EU in a historic swing – leaving the US behind

While the relationship with the United States is historically bad and the tariff threats follow each other, Canada is seeking ever closer cooperation with the EU in both defence, trade and culture.

Quick Look

Canada is increasingly forging ties with Europe, seeking a partnership described as "everything but EU membership itself," after trade talks with the United States collapsed and tariffs were threatened.

AI-generated summary

Why It Matters

Canada has historically had a deep economic and security dependence on the United States, but relations have deteriorated in recent trade conflicts.

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When the Eurovision song contest kicks off next spring in Burgas, Bulgaria, there will be a new country among the contestants: Canada. This is because the Canadian public service channel CBC has become a full member of the European Broadcasting Union, which organizes the musical spectacle.

It may seem like an odd little thing, but it's part of a clear trend: Canada is forging ever stronger ties to Europe.

This summer, Canada chose the German company TKMS to deliver a new submarine fleet – the largest defense deal in the country's history. At the same time, sources tell the CBC that the government in Ottawa is considering buying Swedish Jas Gripen instead of American F-35 planes, as previously planned.

The pattern repeats itself everywhere:

Earlier this year, Canada's government concluded an agreement with the EU to become the first country outside the Union to participate in Safe, the EU's 150 billion euro defense investment fund.

A separate deal with the European Investment Bank is to attract investment to Canada to extract critical raw materials – and export them to Europe.

During the year, Canadian ministers have been increasingly invited to EU ministerial meetings, about the war in Ukraine and the new world order, most recently in Ireland the other week.

Canada's shameless flirtation with Europe stems from its historically poor relationship with the United States. Last week, negotiations on a trade agreement collapsed, after US President Donald Trump, among other things, demanded a veto over Canada's agreements with other countries. Now the US threatens with sky-high tariffs, while Carney responds with the same coin "dollar for dollar".

- Since a fair deal was not on the table, we did the right thing by leaving a bad deal, Carney said afterwards in a speech to the nation.

- This is not the first time that the US has tried to use tariffs to break us.

Since the Liberal took office as prime minister a year and a half ago, Canada has tried to reduce its dependence on the United States, especially in trade and defense. The key word is "diversification".

Above all, Canada wants to get closer to the EU.

In 2016, the EU and Canada concluded a far-reaching free trade agreement, Ceta. Since then, trade in goods and services has increased enormously, by over 80 percent. But still, Canada's trade with the EU is only a fraction compared to trade with the US.

Carney now wants to establish a partnership with the EU that goes much further than free trade and occasional collaborations. The government in Ottawa sums it up as "everything but EU membership itself".

How Brussels should respond to Canada's outstretched hand is currently one of the EU's main concerns. A first round of discussions was held last week between the EU countries' 27 ambassadors.

EU diplomats tell DN that the EU actually wants the same thing as Canada, but warns that it will be difficult to find the right form. From Brussels, there is concern that Canada is underestimating what demands the EU will make, just as Britain did after Brexit.

If a country outside the EU is to gain full access to the EU's internal market, the country must comply with EU laws; in order to participate in EU projects, it is necessary to raise money yourself, and so on.

But while the civil servants are pondering over the law, the top politicians are betting hard on symbolism: On Wednesday, the EU leader Ursula von der Leyen will give her annual line speech on the EU's priorities. And in the audience is Mark Carney – the first leader of a non-EU country ever to be invited.

What to Watch

AI outlook — possibilities, not facts

  • Ursula von der Leyen delivers her annual speech with the Prime Minister of Canada in the audience.

    Very likely · Within days

Open Questions

  • How will the EU shape the new partnership with Canada?
  • Will Canada buy the Swedish Jas Gripen?
  • What are the implications of the US tariff threat for the Canadian economy?

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This article was originally published by Dagens Nyheter.

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