Canadian Prime Minister Mark Carney announced on Friday that he anticipates finalizing negotiations with the European Union in June for a new economic and security partnership that would designate Canada as the bloc’s first “associate member.” Although this term was omitted from the joint declaration issued after a two-day summit in Montreal, Carney emphasized that Canada aims to establish the closest possible relationship with the EU, short of full membership.
The joint statement released by leaders at the summit instead referenced a commitment to form an “ever-closer association” by 2027. Ahead of the EU summit in June, Carney indicated plans for Canadian ministers and European commissioners to meet in March to advance the discussions.
During the summit, Carney, European Commission President Ursula von der Leyen, and European Council President António Costa unveiled the “Alliance for the Future,” a collaborative effort to enhance economic integration and security ties between Canada and the EU. Key achievements include concluding negotiations on a digital trade agreement designed to ease cross-Atlantic business operations and data transfers, as well as an agreement fostering European investment in Canadian critical minerals, which are vital for sectors ranging from electric vehicles to defense technologies.
Canada will also join a European supercomputing initiative, leveraging the EU’s JUPITER supercomputer to accelerate research capabilities. Carney noted that while Canada’s top research computer would take six months to complete certain calculations, JUPITER could perform them within one day.
Costa described the alliance as the closest relationship the EU has ever formed with a non-member country, highlighting expansion in trade, research, and security cooperation amid strained relations with traditional allies following U.S. trade policies. Von der Leyen stressed that shared values rather than geographic proximity should guide international partnerships and advocated for Canada’s status as the EU’s first associate member despite some resistance within member states.
Carney characterized the alliance as a means to bolster sovereignty and economic resilience for both Canada and Europe. He underscored that the digital trade pact will ease Canadian companies’ access to European markets, complemented by a competition agreement aimed at preventing anti-competitive practices and lowering consumer prices. Additionally, the two sides are exploring the potential to link instant-payment systems to reduce the cost and time of cross-border money transfers.
The broader Alliance for the Future could eventually encompass other countries aligned with the EU and Canada on economic and security issues. Discussions are ongoing regarding Canadian participation in Erasmus+, the European student exchange program, as well as increased opportunities for young people to study and work across the Atlantic.
Further cooperation was agreed upon in border security, defense, cybersecurity, Arctic security, and countering foreign interference. The leaders also committed to examining the feasibility of exporting Canadian liquefied natural gas to Europe and the development of new undersea cables connecting Europe, Canada, and Asia.
The prospect of Canada’s enhanced EU ties has drawn criticism from the United States, with former President Donald Trump warning that such arrangements might be considered “hostile acts” and threatening tariffs on Europe. This poses a challenge for Carney, as the U.S. accounted for nearly 72% of Canada’s merchandise exports in 2025, even as Canada aims to diversify and double its exports to other international partners within the next decade.