EU wants Canada to become bloc’s first associate member

European Commission President Ursula von der Leyen has proposed making Canada the European Union's first associate member, a striking overture as US President Donald Trump's threats drive Ottawa closer to Europe.

Trump's tariffs and repeated talk of making Canada the 51st state have soured the relationship between the North American neighbours. 

Canada is seeking to reduce its dependence on the US, the destination for about 70 per cent of its exports, and Prime Minister Mark Carney has called for a "unique alliance" with the EU.

In her annual State of the European Union address, von der Leyen said Canada and the EU would build on their existing free trade agreement, known as CETA, with a broader "Alliance for the Future" aimed at creating "a common prosperity and economic security space”.

"Above all, dear Mark, Europe and Canada believe in democracy," von der Leyen said to Carney, who received a standing ovation at the European Parliament in Strasbourg on Wednesday. He is due to address the Parliament on Thursday.

Canada seeks relationship just short of EU membership

A Canadian official familiar with the discussions told The Associated Press last week that Ottawa was exploring ties with the EU that could stop just short of membership. The official said Canada would seek an arrangement allowing its citizens to live and work in Europe without visas as part of a broader strategic partnership.

Jonathan Wilkinson, Canada's ambassador-designate to the EU, said on Wednesday that Ottawa had discussed associate membership with European officials before von der Leyen's speech and "knew that that was something that was on the table".

He said Canada had talked to the EU about an "Alliance for the Future", while European officials had raised associate membership.

Wilkinson said Canada is not seeking full EU membership because it would require surrendering some sovereignty. Instead, Ottawa wants "to get as close as we possibly can" to the bloc in a way that strengthens Canadian sovereignty rather than diminishes it, he said.

Carney's office welcomed von der Leyen's proposal, saying Canada was deepening ties with the EU "to strengthen our sovereignty" and supported a move beyond CETA.

On Tuesday, Australian Trade Minister Don Farrell said Canberra was aligned with Canada's attempt to seek deeper ties with the EU.

“We are on the same page,” he told The Sydney Morning Herald.

“We will take great interest in what Carney does.”

Farrell did not elaborate further on if Australia was currently actively seeking a deeper relationship with the EU, or what form that relationship could take.

Australia has also been seeking to diversify its trade relationships after facing U.S. tariffs on many exports despite its longstanding security alliance and free trade agreement with Washington.

A spokesperson for the Department of Foreign Affairs and Trade did not respond to a request for comment.

Canada has already joined the EU’s defence procurement program

Von der Leyen said the expanded partnership would cover advanced manufacturing, technology, defence production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.

"This is a partnership not against anyone else, but for our common strength," she said. 

"In short, we want to bring the relationship with Canada to the highest level possible."

Because Canada joining the EU as an associate member would be a first, there is no rule book on how that would work or what it would mean in practice. It is unclear who would need to approve membership, and how long that could take.

Wilkinson said Ottawa and Brussels are deliberately focusing first on the substance of the relationship rather than what to call it. 

"Before you actually get to the point where you decide what you're going to call something, you should actually know the shape," he said.

He said the shape is likely to become clearer at the Canada-EU summit in October, when the two sides expect to make an announcement and may settle on how to describe it.

Currently, all steps toward EU membership must be approved unanimously by the 27 member countries.

The idea of associate membership has been floated in the past for Ukraine, or for post-Brexit Britain, but no concrete steps have been taken.