MONTREAL (AP) — canadian Prime Minister Mark Carney and the European Union’s top official pushed Thursday to make Canada the bloc’s first “associate member” and build a broader alliance open to other countries, while warning of threats to sovereignty from economic coercion during U.S. President Donald Trump’s trade war.
Speaking Thursday in Montreal, the president of the European Commission Ursula von der Leyen said Canada and the EU would form the core of the proposed “Alliance for the Future,” but other like-minded countries would be welcome to join.
Echoing Carney’s warning at the World Economic Forum in Davos in January, von der Leyen said economic relationships once seen as sources of stability were increasingly being used as instruments of pressure.
“When trade becomes a tool of economic pressure, it is families who pay the price, from supermarket shelves to the price of a new car,” she said. “We are seeing our sovereignty under attack in real time. »
Carney said the alliance would help Canada withstand economic shocks and prevent foreign governments and technology companies from dictating its choices.
“Why is sovereignty important in a dangerous and divided world? It allows us to withstand shocks,” Carney said at a news conference. “It allows us to live our lives the way we want. »
Von der Leyen said the broader alliance would go beyond just potential associate member Canada, focusing on critical minerals, resilient supply chains, defense and security.
“It’s about a broader concept,” she said during a business roundtable alongside Carney. “Other trusted, like-minded partners are welcome. »
Trump suggested Canada’s proposed EU deal could be a “hostile act” and threatened to impose tariffs on Europe if he deemed it hostile. Asked Wednesday about possible retaliation, a senior Canadian government official told reporters that the closer relationship was not directed at the United States but reflected long-standing shared interests.
The White House said Thursday that U.S. trade officials have held discussions with their Canadian counterparts in recent days. This statement followed a question about Canada’s desire to strengthen its ties with the EU.
Carney downplayed the importance of the “associate member” designation, which von der Leyen continues to defend despite resistance from some European governments.
“This new alliance is not a marketing exercise. The name does not matter,” he said.
Carney later used the term “associate member” himself while sitting alongside von der Leyen at a business roundtable, emphasizing the economic opportunities that closer cooperation could create.
The summit tests Carney’s vision of a new world order. At Davos, he warned that the US-led international order was collapsing and that economic integration was increasingly militarized. He urged middle powers to unite against coercion from more powerful countries.
“We can no longer allow ourselves to be constrained by the limits of the old world order,” von der Leyen said on Thursday. “We must imagine partnerships based on trust and driven by common interests and beliefs. As Mark Carney has said, the international order will also be built from Europe, with Canada as an integral part.”
Von der Leyen maintains his project for the new status of Canada
Some EU member states have questioned the “associate member” designation proposed last month by von der Leyen, but she showed no signs on Thursday of abandoning the idea.
“Canada cannot become a full member of the EU due to its geography, but we both want to take our relations to the highest possible level,” she said. “This is why we are discussing the idea of Canada becoming the first associate member of the European Union.”
Von der Leyen described the proposed relationship as an “association without membership,” saying it could bring Canada closer to EU membership than any previous agreement with a country outside the bloc.
Anand Sundar, special adviser to the European Council on foreign relations, said France and Germany were among the countries unhappy with the designation and that it might not survive the summit.
“The fact that member states have rejected the idea of associate membership is very embarrassing for von der Leyen,” Sundar said.
Carney ruled out formal EU membership and said any strengthened partnership would be subject to a vote in the Canadian Parliament.
An alliance without membership
The summit is expected to launch an “Alliance for the Future,” a framework for closer cooperation in trade, defense, critical minerals, technology and research.
Von der Leyen said Canada and the EU would finalize a deal on Friday giving Canadian companies, startups and researchers access to Europe’s network of 12 supercomputers, strengthening cooperation on artificial intelligence.
Carney announced Thursday that Canada would invest up to C$1.6 billion ($1.1 billion) in Canadian artificial intelligence company Cohere, which in April announced plans to merge with Germany’s Aleph Alpha. He said Cohere would remain Canadian and invest at least C$1.7 billion ($1.2 billion) in new IT infrastructure in Canada.
Carney said Canada won’t wait for the future of artificial intelligence to be decided elsewhere by people it doesn’t know or trust.
Von der Leyen announced plans to strengthen strategic supply chains and encourage joint investments in sectors critical to economic security.
Economic and defense ties
Canada is the only non-European country to participate in the EU’s €150 billion ($167 billion) SAFE defense procurement program, allowing Canadian companies to participate in joint European military purchases.
But deeper defense cooperation faces obstacles. Sundar said France was pushing for strict “Made in Europe” rules that could limit Canadian companies’ access to future EU defense spending, while Germany favored broader participation.
The two sides have already concluded a broad free trade agreement, known as CETA, which eliminates most tariffs.
The United States accounted for 71.7% of Canada’s merchandise exports in 2025. Carney wants to double exports to other countries over the next decade.
Canada and the EU are seeking closer cooperation on critical minerals as both sides work to diversify supply chains. Von der Leyen said the value of European imports of key Canadian raw materials rose 62% last year to €3.3 billion (C$5.18 billion), including lithium, cobalt, nickel and graphite.
Tobias Gehrke, a senior fellow at the European Council on Foreign Relations, said disagreement over terminology would not risk derailing closer cooperation.
“There is no magic shortcut to quickly reducing Europe and Canada’s dependence on the U.S. economy and military — especially since Washington could retaliate,” Gehrke said. “But the political window is now wide open to take a much bigger step than was previously possible.”
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