Published Oct 28, 2026 10:11 pm : Updated Oct 29, 2026 1:02 pm
Prime Minister Mark Carney, centre, flanked by Aiden Gomez, left, co-founder and CEO of Cohere and Minister of Artificial Intelligence and Digital Innovation Evan Solomon, right, announces an investment of up to $1.6 billion in Canadian AI company Cohere, in Montreal on Thursday, Oct. 29, 2026. (Christinne Muschi /The Canadian Press via AP)
MONTREAL (AP) — Canadian Prime Minister Mark Carney and the European Union’s top official pushed Thursday for an unprecedented alliance that could make Canada the bloc’s first “associate member,” warning that economic pressure from foreign governments and powerful technology companies threatens their sovereignty.
Carney and European Commission President Ursula von der Leyen made the remarks in Montreal as Canada and Europe pursue closer trade, defense and economic ties in response to U.S. President Donald Trump’s trade war and threats against traditional allies.
“When trade becomes a tool of economic pressure, it is families that pay the price, from the supermarket shelf to the cost of a new car,” von der Leyen said. “We are seeing in real time our sovereignty being attacked.”
Von der Leyen warned that economic relationships once considered sources of stability were increasingly being used as instruments of pressure, citing dependence on single suppliers of energy, semiconductors and critical minerals.
Carney said the proposed alliance would help Canada withstand economic shocks and prevent foreign governments and technology companies from dictating its choices.
“Why does sovereignty matter 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 as we choose.”
Von der Leyen said the broader “Alliance for the Future” could eventually include other countries, describing Canada and the EU as its core while welcoming other like-minded, trusted partners.
Trump has suggested Canada’s proposed EU arrangement could be a “hostile act” and threatened tariffs on Europe if he considered it unfriendly. Asked Wednesday about possible retaliation, a senior Canadian government official told reporters the closer relationship was not directed against the United States but reflected longstanding shared interests.
Asked Thursday about von der Leyen’s proposal to make Canada the EU’s first “associate member,” despite resistance from some European governments, Carney said the designation was less important than the benefits of the partnership.
“This new alliance is not a marketing exercise. The name doesn’t matter,” Carney said.
Carney later used the term “associate member” himself while sitting beside von der Leyen at a business roundtable, emphasizing the practical benefits of closer cooperation.
He said the partnership would build on the complementary strengths of Canada and Europe, creating a more affordable life for Canadians and greater opportunities for businesses and researchers.
European Council President António Costa is also in Montreal for the two-day summit, which aims to deepen cooperation as Canada and Europe seek to reduce their dependence on Washington.
The summit puts Carney’s vision for a new global order to the test. At the World Economic Forum in Davos, Switzerland, in January, he warned that the U.S.-led international order was breaking down and urged middle powers to unite against economic coercion by great powers.
Von der Leyen stands by her plan for Canada’s new status
Some EU member states have questioned the “associate member” designation proposed last month by von der Leyen, but she showed no sign Thursday of abandoning the idea.
“Canada cannot become a full-fledged member of the EU because of geography, but we both want to bring our relationship to the highest level possible,” 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 accession,” saying it could bring Canada closer to EU membership than any previous arrangement with a country outside the bloc.
She said the proposed relationship would deepen cooperation on artificial intelligence, energy, defense and other areas.
Anand Sundar, a special adviser at the European Council on Foreign Relations, said France and Germany are among the countries unhappy with the designation and that it may not survive the summit.
“The fact that member states have rejected the associate membership framing is very embarrassing for von der Leyen,” Sundar said.
Carney has ruled out formally joining the EU and said any enhanced partnership would face a vote in Canada’s Parliament.
An alliance without membership
The summit is expected to launch an “Alliance for the Future,” a framework for closer cooperation on trade, defense, critical minerals, technology and research.
Speaking at a business roundtable Thursday, von der Leyen distinguished the broader alliance from associate membership, which would involve closer alignment between Canada and the EU on policies, programs and governance. She said other like-minded countries would be welcome to join the broader initiative.
Von der Leyen said Canada and the EU would finalize an agreement Friday giving Canadian companies, startups and researchers access to Europe’s network of 12 advanced supercomputers, strengthening cooperation on artificial intelligence.
She also announced plans to strengthen strategic supply chains and encourage joint investment in industries critical to economic security. Officials hope to develop the broader partnership for possible endorsement in 2027.
Economic and defense ties
Canada is the only non-European country participating in the EU’s 150-billion-euro ($167-billion) SAFE defense procurement program, allowing Canadian companies to take part in joint European military purchases.
But deeper defense cooperation faces obstacles. Sundar said France is pushing for strict “Made in Europe” rules that could limit Canadian companies’ access to future EU defense spending, while Germany favors broader participation.
The two sides already have a sweeping free trade agreement, known as CETA, that eliminated 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 EU imports of Canadian critical raw materials rose 62% last year to 3.3 billion euros ($3.7 billion), including lithium, cobalt, nickel and graphite.
Tobias Gehrke, a senior policy fellow at the European Council on Foreign Relations, said the disagreement over terminology was unlikely to derail closer cooperation.
“There is no magic shortcut to rapidly reducing Europe’s and Canada’s reliance on the U.S. economy and military — not least since Washington might retaliate,” Gehrke said.
“But the political window is now wide-open to take a much bigger step than was previously conceivable.”
By ROB GILLIES
Associated Press
This post was last modified on 10/29/2026 1:02 pm