Canada-EU Alliance Takes Shape as Trudeau Tries to Diversify Trade

Prime Minister Mark Carney's comment last summer that Canada is 'the most European of non-European countries' has raised eyebrows, but it seems he may be taking his words to heart. At a joint summit in Brussels, Carney described Canada as such, leading some to speculate that his true goal was not to improve relations with the US, but to join the EU.

However, it appears that a full-fledged Canada-EU alliance may be in the works. Bloomberg reported this week that Canada and the EU are 'working toward a new, all-encompassing relationship' that will cover trade, security, supply chains, and critical raw materials.

The arrangements will reportedly aim to formalize the partnership, but it's unclear whether new legal tools would be needed. This announcement coincided with Canada placing counter-tariffs on US products in the ongoing trade war.

While building or increasing trade with other countries is a perfectly acceptable strategy, some may question the feasibility of such an alliance. The EU has the world's second-largest economy and third-largest GDP, whereas Canada is a middle power at best.