European Council President António Costa has described Canada as “by far the most European country outside Europe”, highlighting the close political and cultural relationship between Ottawa and Brussels as both sides pursue a deeper strategic partnership amid growing global economic tensions.
The remarks came during the two-day European Union-Canada summit held in Montreal on October 29 and 30, 2026. Canadian Prime Minister Mark Carney hosted European Commission President Ursula von der Leyen and European Council President António Costa for discussions on trade, defence, technology, critical minerals and economic security.
The summit reflects a growing effort by Canada and the European Union to strengthen their relationship and reduce their dependence on major economic powers, particularly the United States. The discussions also come amid continuing trade tensions between Washington and its international partners. <Cite refs={[“turn569823news6″,”turn569823search2”]}/>
EU Leadership Highlights Canada’s European Connections
Costa’s remarks underline the European Union’s view of Canada as a particularly close international partner.
Canada shares historical, cultural, political and institutional connections with several European countries. Its democratic institutions, parliamentary traditions and commitment to multilateral cooperation have helped establish strong relations with European governments.
European Commission President Ursula von der Leyen has also supported bringing Canada closer to the European Union through a proposed new relationship that could go beyond existing cooperation agreements.
She has argued that shared democratic values and common approaches to international challenges provide a strong foundation for closer collaboration.
The proposal has attracted attention because it could create a new model of engagement between the European Union and a country that is not geographically part of Europe. <Cite refs={[“turn569823news6″,”turn569823search1”]}/>
Canada Could Become EU’s First Associate Member
One of the most significant proposals discussed during the diplomatic engagement is the possibility of Canada becoming the European Union’s first associate member.
Von der Leyen first publicly proposed the idea in September 2026, suggesting that Canada should receive a closer relationship with the bloc without becoming a full EU member.
The proposal is intended to create opportunities for Canada to participate more closely in selected European programmes, policy discussions and cooperation frameworks.
However, the exact meaning and structure of associate membership remain under discussion. Some EU member states, including France and Germany, have raised concerns about the terminology and the possible implications of creating a new membership category.
Canadian Prime Minister Mark Carney has indicated that the precise label is less important than the practical benefits the partnership could deliver for Canadian citizens and businesses. <Cite refs={[“turn569823search0″,”turn569823search4″,”turn569823news7”]}/>
Canada cannot become a full member of the European Union under its existing geographical and treaty framework. The proposed arrangement would therefore be different from traditional EU membership.
Trade and Economic Cooperation at the Centre of Discussions
Trade remains one of the most important areas of cooperation between Canada and the European Union.
According to the European Council, trade in goods and services between the two sides was worth approximately €130 billion in 2025, representing an increase of more than 80 per cent compared with 2016.
Both sides already have a major trade framework through the Comprehensive Economic and Trade Agreement, commonly known as CETA.
The agreement has been provisionally applied since 2017 and has helped reduce tariffs and expand commercial opportunities. However, some provisions still require ratification by individual EU member states.
At the Montreal summit, leaders discussed ways to strengthen economic cooperation through digital trade, industrial investment, supply-chain security and improved market access. <Cite refs={[“turn569823search2″,”turn569823search4”]}/>
For Canada, closer access to European markets could help diversify exports and reduce its heavy dependence on the American economy.
The United States accounted for approximately 71.7 per cent of Canada’s merchandise exports in 2025, making the American market extremely important to Canadian businesses.
Carney has set an objective of doubling Canada’s exports to markets outside the United States over the next decade.
Defence, Artificial Intelligence and Critical Minerals
Beyond trade, Canada and the European Union are exploring cooperation in several strategic industries.
Critical minerals are a major priority because European countries are seeking reliable supplies of resources needed for electric vehicles, renewable energy, electronics and advanced manufacturing.
Canada has substantial mineral resources and an established mining industry, while European countries offer investment, technology and industrial demand.
Artificial intelligence and digital infrastructure are also expected to play an important role in the developing partnership.
The two sides are examining opportunities for cooperation in scientific research, access to advanced computing facilities and technology development.
Defence cooperation is another important area. Canada is already the only non-European country participating in the European Union’s €150 billion Security Action for Europe programme, known as SAFE, which supports investment in European defence production through joint procurement.
The arrangement provides Canadian companies with opportunities to participate in certain European defence projects. <Cite refs={[“turn569823search2″,”turn569823search0”]}/>
US Trade Tensions Encourage Canada to Look Towards Europe
The growing Canada-EU relationship comes at a time of uncertainty in international trade.
Trade disagreements with the United States have encouraged Ottawa to explore additional economic partnerships and reduce the risks associated with relying heavily on a single export market.
Carney has repeatedly emphasised the importance of economic independence and stronger relationships with countries that share Canada’s approach to democracy, international cooperation and rules-based trade.
The European Union is also facing challenges involving global competition, economic security and supply-chain dependence.
For both sides, closer cooperation could provide additional opportunities to strengthen their economic position and respond to changing international conditions.
However, building a deeper partnership will require negotiations over regulatory standards, industrial policies, defence procurement and the participation of individual EU member states. <Cite refs={[“turn569823news6″,”turn569823search4”]}/>
Differences Within Europe Could Slow the Proposal
Despite strong support for closer relations with Canada, the proposal for associate membership has not received unanimous backing across Europe.
Some governments believe the European Union should deepen cooperation with Canada without introducing a new membership category.
France and Germany have reportedly expressed reservations about the proposed terminology, arguing that its legal and political implications need to be clarified.
There are also questions about how far Canada could participate in European programmes and whether such participation would require additional agreements.
The Montreal summit is expected to advance negotiations, but the proposed associate membership arrangement remains a subject of discussion rather than an established status. <Cite refs={[“turn569823search0″,”turn569823search4″,”turn569823news7”]}/>
Conclusion
European Council President António Costa’s description of Canada as the most European country outside Europe reflects the increasingly close relationship between Ottawa and Brussels.
The latest summit in Montreal has highlighted opportunities for cooperation in trade, defence, artificial intelligence, critical minerals and economic security.
The proposal to make Canada the European Union’s first associate member could create a new model of international partnership, although its structure and legal implications remain unresolved.
As Canada seeks to diversify its economy and Europe looks for reliable strategic partners, both sides appear committed to building a closer relationship. The coming negotiations will determine how far that ambition can be translated into practical agreements and long-term cooperation.