Canadian officials are negotiating with the European Union for closer ties with the economic bloc in response to the breakdown of trade negotiations with the United States earlier this summer, the Wall Street Journal reported on Saturday—including potentially becoming an “associate member” of the union.
Canadian Prime Minister Mark Carney will address the European Parliament next week.
Although the EU is historically not known for allowing flexible membership arrangements with individual countries, European officials are reportedly open to Canada joining as an “associate member,” anonymous officials from both Canada and the EU told the Journal.
This could mark the largest reorientation of the Canadian economy in decades—the U.S. has long been Canada’s largest trading partner, with about 72% of exports going across the southern border in 2025.
The details of a potential deal are still being discussed, according to the Journal’s reporting, but it could lead to increased trade between the two, including potentially shipping fertilizer through the Arctic and building new natural gas pipelines, which could help Europe end its reliance on Russian natural gas.
