However intriguing — and, for some, enticing — the idea of EU membership may be, it defies Canada’s economic reality. In today’s world, geography does still matter, and Canada is deeply embedded in the North American economy.
Roughly three-quarters of Canadian merchandise exports continue to flow to the United States, and integrated supply chains remain overwhelmingly continental. While this situation has exposed vulnerabilities to Canada’s economic sovereignty that the Canadian government is correctly trying to address, EU membership is not the answer.
The implications of full EU membership would be colossal for Canada. Beyond the need to adopt EU tariffs and set up a customs border with the US, it would require wholesale adoption of the EU’s body of law (its acquis) — from product standards and data governance to competition and state-aid rules. Such regulatory realignment would be costly and complex and would invariably destabilize the Canadian economy in the North American market and beyond.
Yet, rejecting EU membership does not mean rejecting Europe. The European Union is still one of the world’s largest and wealthiest markets. It is re-industrializing around green and digital priorities, investing heavily in defence and resilience, and actively seeking reliable partners for energy and critical minerals.
What is more, the European Union is already Canada’s second-largest trading partner and one of its most important investment partners. Since the provisional application of the Comprehensive Economic and Trade Agreement (CETA) in 2017, nearly all tariffs have been eliminated and bilateral trade in goods and services has grown markedly.
For all of these reasons, the Canadian government is right to prioritize Europe within its trade diversification strategy. Yet, despite clear opportunities and sustained political attention, a great deal of commercial potential in the Canada-EU relationship remains unrealized.
These things don’t happen over night. The world is interconnected anyway. America is not going to like it if Canada trades with them less, which explains why someone is worried.
He welcomed an offer to make Canada an “associate member” of the 27-nation European Union but stopped short of fully endorsing the idea. Carney said the two sides would define their future alliance together.
His speech, repeatedly interrupted by applause from European lawmakers, followed a warning from Trump, who has been locked in a bitter trade war with Canada. Trump said late Wednesday he could impose “very serious tariffs” or cut trade with the E.U. if he determines the offer to Canada is “a hostile act.”
Trump added, however, that “if it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.”
Asked about Trump’s remarks, Carney told reporters in Strasbourg, “Canadians are united that nobody is going to tell us what language we speak, nobody is going to dictate our culture, or with whom we can strike agreements.”
More where that came from here
There’s still a way that everyone can work together without anyone haveing to be scared. They just have to find it, or even want to find it.