LAST UPDATE | 17 Sep

CANADIAN PRIME MINISTER Mark Carney has said a closer alliance between Canada and the European Union should not become another global power rival “only with better manners”, after US President Donald Trump suggested that allowing Canada to become an associate EU member could be a “hostile act”.

Carney addressed the European Parliament in Strasbourg this morning, a day after European Commission President Ursula von der Leyen proposed making Canada an EU associate member, a status that does not currently exist in the bloc’s treaties and would have to be created.

His address got off to an awkward start when an MEP chanted “USA, USA” as he approached the podium, drawing gasps and boos from others in the chamber.

Carney did not name Trump in his speech but made a series of pointed remarks about economic coercion, the use of tariffs as leverage and the need for countries to reduce their dependence on powerful partners.

“I want to be precise about what I am not proposing. I am not proposing a third bloc in order to become a great-power rival, only with better manners,” Carney  said.

“We do not seek power to dominate others. On the contrary, we are pursuing resilience so that no one can control our open markets, impair our sovereignty, threaten our territorial integrity, or undermine our freedoms, our democracies, our rule of law.”

He said a Canada-EU alliance should be “strong enough so that no one can dictate our choices”.

Von der Leyen addressed Carney directly during her State of the Union speech on Wednesday, highlighting the deep cultural, historical and personal ties between Europe and Canada before setting out plans for a closer economic and security partnership.

She said the EU wanted to bring its relationship with Canada “to the highest level possible”.

However, the US has threatened to respond to the proposed move by imposing further tariffs on the EU. Trump has described the prospect of Canada joining the bloc as “laughable” and called America’s neighbour a “terrible trade partner”.

Carney has been seeking new trading partners following a breakdown in trade talks with Washington and the imposition of further tariffs.

In his address today, Carney described Canada and Europe as longstanding partners whose relationship was rooted in shared values.

“We are not fair-weather allies. We do not pursue zero-sum deals,” he said.

He argued that countries could reduce the influence of more powerful partners by diversifying their economic relationships without needing to become entirely self-sufficient.

“The leverage of the powerful in an exploitive relationship collapses well before complete independence is achieved,” Carney said.

“The objective is not self-sufficiency. It is collective resilience.”

Plans for closer ties

Carney welcomed von der Leyen’s proposal for an “Alliance for the Future”, which could see Canada become the EU’s first associate member.

“We welcome this ambition,” he said, adding that the two sides would define the proposed alliance together.

The Canadian prime minister also expanded on what such a partnership could involve, setting out proposals for closer cooperation on trade, defence, energy and technology.

Among them was making it easier for young Canadians and Europeans to live, work and study on either side of the Atlantic.

“We should deepen our people-to-people ties, allowing our youth to live, work and study where they want on either side of the Atlantic,” Carney said.

He also called for Canadian membership of Erasmus+, the EU’s student exchange programme, and the next generation of Horizon, its research and innovation programme.

The proposals would require further agreement and do not amount to an announcement of free movement between Canada and the EU.

Carney proposed moving towards more seamless digital trade in non-agricultural goods and a wide range of services, as well as exploring an integrated market for financial services.

Canada could help meet Europe’s demand for critical minerals and contribute liquefied natural gas and hydrogen to bolster European energy security, he said.

Other areas identified for closer cooperation included artificial intelligence, defence industrial capacity, space and payment systems.

On Monday, the European Parliament announced plans to open an office in Ottawa, with Parliament President Roberta Metsola saying it would help deepen cooperation between the two sides.

Canada has also become the first non-EU country to join the bloc’s defence procurement programme.

Carney said the proposed alliance was not intended to shut out other countries.

“A Canada-EU alliance would create a beacon for other democracies,” Carney said, envisaging a partnership that was “open enough that others can join” and whose strength would reinforce international law rather than replace it.

With additional reporting from Press Association