European Commission President Ursula von der Leyen has proposed that Canada become the European Union's first "associate member," a status the bloc has no existing framework for. The offer, made during her state-of-the-union address in Strasbourg, would need unanimous approval from all 27 EU member states and comes as Canada remains locked in a trade dispute with the United States.
Ursula von der Leyen told the European Parliament in Strasbourg on Wednesday that the EU wants to open the door for Canada to become its first "associate member". Canadian Prime Minister Mark Carney was in the chamber to hear the proposal, which sparked a standing ovation from lawmakers.
An offer without a framework
According to Reuters: "we want to bring the relationship with Canada to the highest level possible", von der Leyen said. She then walked up to Carney and embraced him after raising the associate-membership idea.
But the EU has no existing category for associate membership, so the proposal would require unanimous approval from all 27 member states. Several capitals are wary of granting Ottawa preferential treatment beyond existing trade ties. Carney, facing scepticism from EU governments and domestic opponents, said this week he was instead seeking a "unique alliance" with the bloc rather than full membership.
The EU-Canada free trade agreement, known as Ceta, is still not ratified by 10 member states, including France, Italy and Poland, nine years after being signed. It remains in force provisionally, meaning tariff cuts and market access already apply, but several member states have said ratification should come before any new steps.
A partnership shaped by trade tensions
Von der Leyen framed the outreach to Canada against what she called an openly hostile world, pointing to rivalry with the United States and China. Canada, for its part, has pledged to match President Donald Trump's tariffs dollar for dollar amid its own trade war with Washington.
Berenberg chief economist Holger Schmieding called it a big step, telling CNBC's Squawk Box Europe that Europe is trying to deepen partnerships with like-minded countries to reduce its dependence on both the U.S. and China. The EU had previously resisted flexible membership categories, including a similar push by German Chancellor Friedrich Merz to consider associate status for Ukraine earlier this year.
Sources: CNBC, Financial Times, Investing.com
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