EU chief wants Canada to become bloc’s first associate member

European Commission president Ursula von der Leyen on Wednesday proposed making Canada the EU’s first associate member, a striking overture as US President Donald Trump’s threats drive Ottawa closer to Europe.

Speaking in Charlotte, North Carolina, Trump suggested allowing Canada to become an associate EU member could be a “hostile act” and threatened to respond to the proposed move by imposing more tariffs on the bloc.

Trump conditioned his threat on the “intention” of European leaders, saying: “If it’s a good intention, that’s fine. If it’s a bad intention, we’ll put very heavy tariffs on Europe.” He also suggested the US could cut off trade with Europe in certain areas.

Trump called the prospect of Canada joining the EU “laughable” and called America’s neighbour a “terrible trade partner”. On Wednesday he also ratcheted up his trade war by signing an order restricting the US government’s purchases of Canadian goods.

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% of its exports, and Prime Minister Mark Carney has called for a “unique alliance” with the EU.

In her annual state of the EU 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”.

She cast that closer relationship as rooted not only in trade but in shared democratic values.

“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, France. He is due to address the parliament on Thursday.

A Canadian official familiar with the discussions said last week 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 Ottawa had discussed associate membership with European officials before Von der Leyen’s speech and “knew 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.