Canada and the EU are exploring closer trade, defence and energy ties as Ottawa seeks to reduce its reliance on the United States.
Canada is looking to Europe as it seeks new ways to strengthen its economy and security.
Prime Minister Mark Carney says Canada wants to deepen its ties with the European Union. However, he stopped short of saying Canada could seek EU membership.
The idea of Canada joining the EU has gained attention as trade tensions with the United States grow. Still, experts say full membership remains highly unlikely.
Instead, Canada and Europe could build a closer partnership in key areas such as trade, defence, energy and critical minerals.
Carney signals closer ties with Europe
Carney faced questions about Canada’s future relationship with the EU on Thursday in Banff, Alta.
He did not rule out deeper links. However, he also did not suggest that Canada plans to join the bloc.
Instead, he said Ottawa will spend the coming months looking at ways to expand the partnership.
Carney is also set to speak to the European Parliament in Strasbourg next week. His visit could offer more clues about Canada’s plans.
The push comes as Canada and Europe face a changing global trade and security landscape.
The United States remains a vital partner for both sides. Yet U.S. trade policies under President Donald Trump have created fresh pressure.
Tariffs and protectionist policies have also pushed Canada to look for more options.
Trade could be just the start
Canada and the EU already have strong economic links. However, both sides have signalled that more can be done.
In June 2025, Canada and the EU outlined a plan for closer cooperation.
The plan focused on several key areas.
These included trade, economic security and supply chains. It also called for closer work on regulations and digital technology.
Climate action and education were also part of the plan.
Defence was another major focus.
That area could become even more important as Canada prepares to increase military spending.
Defence could bring Canada and Europe closer
Christian Leuprecht, a professor at the Royal Military College in Montreal, sees Europe as a natural partner for Canada.
He says Ottawa could buy more military equipment from European countries.
That could help Canada strengthen its defence ties while also reducing some reliance on U.S. suppliers.
At the same time, Europe has resources that Canada needs.
Canada could supply Europe with energy and critical minerals. That could create a stronger two-way relationship.
Leuprecht described the opportunity as a possible “grand bargain.”
Canada could invest more in European security. In return, European partners could help Canada with trade, investment and major projects.
That could matter because Canada often needs outside capital to fund large infrastructure projects.
Europe wants a partnership with more depth
The EU also appears ready to explore a new model with Canada.
Geneviève Tuts, the EU’s ambassador to Canada, recently said the relationship could become something unique.
She suggested that Canada and the EU want to go beyond existing models used with countries such as Norway, Switzerland and the United Kingdom.
The goal, she said, is deeper integration.
That could mean closer cooperation across several sectors instead of simply expanding trade.
Experts warn against expecting a major shift
Still, not everyone expects Canada’s economic relationship with Europe to change dramatically.
Aurel Braun, a University of Toronto professor of international relations, says Canada’s geography will continue to shape its trade.
The United States is Canada’s closest major market. It is also deeply linked to the Canadian economy.
Therefore, even stronger ties with Europe are unlikely to replace the U.S.
Braun argues that Canada could win some new trade opportunities with European countries. However, he does not expect those changes to transform the overall structure of Canadian trade.
Canada faces a balancing act
For Ottawa, the challenge is clear.
Canada wants stronger links with Europe. At the same time, it cannot easily walk away from its largest trading partner.
That means diversification may be the more realistic goal.
Rather than replacing the United States, Canada could build stronger links with Europe and other markets.
Such a strategy could give Ottawa more options during future trade disputes.
For now, Carney appears focused on making that relationship deeper.
His speech in Strasbourg next week could show just how far Canada is ready to go.
