Is Canada joining the EU? The story behind its 'associate member' plan

The EU wants Canada to become its first 'associate member', paving the way for closer economic and defence ties, but the proposed status has no established legal framework yet

European Commission President Ursula von der Leyen on Wednesday proposed creating a new “associate member” status for Canada, potentially making it the first country to hold such a position. The proposal, made during Canadian Prime Minister Mark Carney's visit to the European Parliament, comes as Ottawa seeks to reduce its dependence on the US amid worsening trade relations under President Donald Trump, while Europe looks to strengthen its economic and security partnerships.

 

Canada has welcomed the push for closer cooperation, but the terms of any new arrangement are yet to be worked out. So, what exactly is being proposed?

Canada is not applying to join the EU

Full European Union (EU) membership is governed by Article 49 of the Treaty on European Union. It allows a European state that meets the bloc’s democratic and legal requirements to apply for membership. The process involves negotiations, approval by all EU member states, and ratification of the accession agreement.

 

 

Canada is not going through this process and has not applied for full EU membership. Associate member is not an established category of EU membership under the bloc’s treaties, meaning Canada and the EU would have to negotiate what the status would cover and what obligations it would entail.

What would associate membership mean?

Von der Leyen has proposed moving the relationship beyond the existing Comprehensive Economic and Trade Agreement, or CETA, towards what she called an “Alliance for the Future”. Areas identified for cooperation include technology, defence industries, intelligent manufacturing, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.

 

Carney’s government has also outlined a broad agenda covering critical minerals, defence manufacturing, AI and computing, energy, space, financial services and payments, as well as easier digital trade in non-agricultural goods and services.

 

That does not mean Canada would receive the same rights as an EU member, the Wall Street Journal reported.

 

According to the European External Action Service, the EU has different forms of economic and political ties with non-EU countries, including the European Economic Area (EEA) arrangement with Norway, Iceland and Liechtenstein, and bilateral agreements with Switzerland.

Why does Canada want closer ties with Europe?

For decades, the US has been Canada’s biggest trading partner, but that dependence has become a growing concern as tariff tensions have strained ties. According to Statistics Canada and Global Affairs Canada, the US share of Canada’s merchandise exports fell from 75.9 per cent in 2024 to 71.7 per cent in 2025, and has dropped further to 66.3 per cent in 2026.

 

That has made finding new markets a priority, with the EU an obvious option. Canada’s two-way trade in goods and services with the bloc was worth about C$178 billion in 2025, while Canadian and European companies also have significant investments in each other’s markets.

 

Ottawa is also rebuilding trade ties with India, where negotiations for a Comprehensive Economic Partnership Agreement (CEPA) are under way, with both sides aiming to conclude the deal by the end of 2026. Canada and India have set a goal of more than doubling bilateral trade to C$70 billion by 2030.

 

Canada has also been seeking to improve commercial ties with China, its second-largest trading partner. In January, Ottawa and Beijing agreed on a preliminary arrangement covering trade issues, including lower Chinese tariffs on Canadian canola and a Canadian quota for Chinese electric vehicles.

 

The move has also drawn a sharp response from Washington. US President Donald Trump has called the proposed Canada-EU associate membership a potential “hostile act” and warned of economic consequences for Europe if it was intended to counter the US.

 

Neither Canada nor the EU has framed the proposal that way. Von der Leyen said the partnership was about strengthening Canada and Europe, not targeting another country.

What does Europe gain?

Canada’s critical minerals and energy resources are also important to the EU as it seeks to diversify supply chains for industries such as batteries, electronics and defence. At the June 2025 summit, the two sides agreed to deepen cooperation and investment in raw materials.

 

Canada and the EU also signed a Security and Defence Partnership in June 2025 covering areas including maritime security, cybersecurity, military mobility and space. Canada later became the first non-European country to join the EU’s Security Action for Europe (SAFE), allowing Canadian companies to take part in eligible European defence procurement. The proposed associate membership would build on these expanding ties.

Why go beyond CETA?

Canada and the EU already have a trade deal, CETA, which has been in place provisionally since 2017. It cut tariffs and opened up markets in goods, services, investment and public procurement. The European Commission says trade in goods and services reached €130 billion in 2025, up from €72.1 billion in 2016.

 

But CETA has not yet been fully ratified by all EU countries and 17 of the 27 member states have completed the process, according to the European Commission.

What to watch next

Canada and the EU are due to hold their next summit on October 29 and 30, 2026, when the relationship is expected to be taken forward. The negotiations will have to address market access, regulation, investment, mobility, institutional participation, defence cooperation and the rights and obligations of both sides. Whether that becomes a formal “associate membership” will depend on negotiations that have only just begun.