Carney says Canada will pursue ‘unique economic alliance’ with EU amid US trade spat

Prime Minister Mark Carney announced Canada's ambition to forge a unique economic and security alliance with the European Union, positioning the country as a strategic hub amidst the US trade tensions. Speaking at the inaugural Canada Investment Summit, Carney presented Canada as a "safe harbour" and a lucrative destination for foreign capital, highlighting the potential for hundreds of billions in fresh investment.

The relationship with the US has weakened over the past 18 months, prompting Canada to seek alternative ways to safeguard its economy. Carney emphasized the importance of taking care of Canada's own interests and fostering mutually beneficial partnerships abroad. The EU-Canada relationship, already encompassing a free-trade agreement and various deals in digital cooperation, raw materials, and research, could deepen further.

However, the EU maintains a clear distinction between members and non-members, and any expansion of the Canada-EU ties will respect this principle. Despite some obstacles, such as the non-ratification of the Comprehensive Economic and Trade Agreement by ten EU member states, trade between the EU and Canada has surged to €130bn annually since 2016.

Canada remains the US's most significant trading partner, but Carney stressed that Canada will continue to play a crucial role in the US economy.