Canada's Carney pushes 'new alliance' with EU despite Trump threats

BRUSSELS: Canada's Prime Minister Mark Carney shrugged off a threat of US retaliation on Thursday (Sep 17) as he pitched a "new alliance" with Europe as a bulwark against outside pressures, in a closely watched speech to the European Parliament.

His speech came after EU chief Ursula von der Leyen suggested Canada could become the 27-nation bloc's first "associate member" in her annual "State of the European Union" address on Wednesday.

"Europe and Canada are stronger together," Carney said, in a speech that drew a standing ovation, saying his country welcomed the EU proposal and wanted deeper cooperation on issues from artificial intelligence to defence and energy.

The Canadian leader pushed back afterwards at US President Donald Trump's threat to cut trade ties with the EU should the plan go ahead - telling reporters: "No one is going to dictate our culture, or with whom we can strike agreements internationally."

Carney has been pursuing closer ties with the Europe, as his country gets drawn ever deeper into a trade war with the US.

EU-US relations have also been strained by tariffs and territorial threats.

Von der Leyen's proposal drew an irritated rebuke from Trump, who slammed it as "laughable" and told reporters he could impose "very serious tariffs" or "stop trading with Europe" should it go ahead.

"CREATE A BEACON"

The contours of the "associate member" pitch were not immediately clear as EU treaties do not envisage such a possibility - but Carney said Canada "welcomes this ambition".

Von der Leyen had emphasised the partnership was "not against anyone else, but for our common strength," and Carney likewise sought to reassure Washington the alliance would not be antagonistic but a "positive" initiative.

"We do not seek power to dominate others," he said - while suggesting the alliance could "create a beacon for other democracies".

"We are pursuing resilience so no one, 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.

Carney's visit to Strasbourg was meant to act as a catalyst ahead of an EU-Canada summit in Montreal next month.

Canada could help Europe secure supplies of critical raw materials and contribute towards its energy needs with liquified natural gas and hydrogen "at large scale", Carney said, offering deeper cooperation on "the full range of strategic capabilities" including AI, compute, space and payments.

The two parties should move towards "seamless digital trade" and allow their young people to work and study on either side of the Atlantic, he said.

In her own speech Wednesday, von der Leyen similarly talked about forming a "tech alliance", integrating defence industrial bases and making the Arctic "a flagship joint project".

WHAT'S IN A NAME?

The idea of creating a new "associate" status short of full membership was first floated by German Chancellor Friedrich Merz this year for Ukraine.

Under that plan Kyiv would have benefited from parts of the EU budget, attended the bloc's summits and had a representative in the European Commission - but no full voting rights.

Terminology aside, Carney told reporters: "What matters is the substance - what are we actually building together?"

EU rules demand that member states approve any form of partnership with a non-EU country, and it was unclear how much support von der Leyen's proposal would receive from capitals.

The EU and Canada already have the CETA free-trade agreement, which abolished almost all tariffs. Trade in goods and services have jumped more than 80 per cent since 2016.

And this year Canada became the first non-EU country to join a flagship defence loan programme.

One EU official said the bloc needed to be "realistic and pragmatic" about what more it could achieve.

But a European diplomat speaking on condition of anonymity said EU countries were keen to keep strengthening ties with Canada, regardless of terminology.

"Carney came here to strengthen his cards vis a vis the US. Ursula helped him," the diplomat said. "Trump's reaction shows they already won."