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PM Carney Seeks New “Alliance” with EU at European Parliament
On Sunday, Prime Minister Mark Carney announced that Canada is seeking a “unique alliance” with the European Union as the country explores alternatives to its longstanding orientation towards the United States.
The remarks come as Carney prepares to travel to Strasbourg to attend the EU’s State of the Union address on Wednesday, the first-ever visit by a foreign head of state. The Prime Minister will address the European Parliament the following day, and meet with European lawmakers and heads of state.
The Prime Minister’s visit is the latest demonstration of his interest in deepening the trans-Atlantic relationship. The Prime Minister has a strong personal connection to the United Kingdom, where he served for seven years as the first non-British governor of the Bank of England. After his election as PM, his first official visits were to France and the United Kingdom. He took the unusual step of requesting that King Charles III personally open the new session of Canada’s Parliament. And next year, Canada will compete in the Eurovision Song Contest for the first time.
As first reported in The Wall Street Journal, Carney appears to be seeking more than friendly relations. While the Prime Minister has rejected the idea of Canada becoming a full member of the EU, he is reportedly pursuing an “associate member” status. Proposals under discussion include not just trade and defense agreements, but even the possibility that Canadians would be allowed to live and work in Europe visa-free.
This would be a major change from the last 80 years, when Canada has been heavily oriented towards the United States for trade, defense, and diplomacy. Historically, Canada was much more closely tied to Europe because of its place in the British Empire. However, when the US became ascendant after WWII, Canada reoriented itself towards its southern neighbor. The trade relationship deepened after PM Brian Mulroney and US president Ronald Reagan negotiated the Canada-US Free Trade Agreement that was later expanded into NAFTA. The partnership seemed to benefit both countries: in recent years, about 70% of Canada’s exports have gone to the United States.
However, the current US administration has firmly indicated that the era of free trade is over. At the same time, US officials have dismissed Canada’s attempts to pivot away in search of new partners. They argue that the EU cannot substitute for the huge amount of trade that crosses the US-Canada border: Canada’s exports to the EU are less than a tenth of what the country exports to the US. US negotiators believe that the sheer size of the US economy will eventually force Canada back to the negotiating table, on more favorable terms.
The proposed Canada-EU alliance, however, is grounded in more than trade. European and Canadian statements have stressed their shared democratic values and similar outlook. And the talks reflect an underlying desire to reduce dependence on the US. Both parties have expressed concern about the reliability of the US as a global partner, and not just in trade. Issues such as Trump’s interest in acquiring Greenland and the Iran war have strained diplomatic ties between Europe and the US, while Canada has contended with repeated “51st state” rhetoric from the president and his allies.
Image of Mark Carney by Policy Exchange on Wikimedia Commons. |