May this endanger Canada’s financial relationships with the US?
After US-Canada commerce talks ended final month, President Donald Trump imposed 50 per cent tariffs on US$20 billion of Canadian items, and Carney retaliated against roughly the identical worth of US merchandise. Getting nearer to the EU would assist Carney pursue what his authorities describes as a sovereignty agenda geared toward decreasing overseas dependencies.
However Canada’s deep financial integration with the US, together with interwoven cross-border provide chains, might power some troublesome decisions for Ottawa, together with in areas the place EU and US product security and different requirements diverge.
After the negotiations with Washington fell aside in August, Carney stated one of many sticking factors was that the US needed a say in future commerce offers that Canada would possibly signal. That was an unacceptable constraint on Canada’s proper to make its personal selections, he stated.
It’s additionally clear the Trump administration is concerned with securing extra of Canada’s huge pure sources, together with oil and minerals, and it may not look favourably on any deal that ensures Europe improved entry to these uncooked supplies.
Canada-EU commerce has been rising and equalled C$134 billion (US$96 billion) in items final 12 months, in keeping with a analysis paper from Canada’s Library of Parliament. Providers added one other C$58 billion. That’s nonetheless a fraction of the nation’s commerce with the US, which was nicely over US$800 billion final 12 months.
How rapidly might Canada be a part of the EU as an affiliate member?
As it will be a brand new form of relationship, it’s not clear what the subsequent steps could be to formalise Canada’s affiliate membership or whether or not it will include related obligations to full membership.
Within the first occasion, EU member states might want to take inventory of von der Leyen’s suggestion. As head of the European Fee, the EU’s govt department, she has the facility of initiative.
However EU proposals on enlargement should even be authorized by the European Parliament and the council of the EU, representing member states. Full membership of the EU must be unanimously accepted by all members.
Leaders could have an incentive to make tangible progress once they meet for an EU-Canada summit in Montreal in October.
