Carney, EU Push for Assoc. Membership  10/30 06:07

   Canadian Prime Minister Mark Carney and the European Union's top official 
pushed Thursday to make Canada the bloc's first "associate member" and build a 
broader alliance open to other countries as they warned of threats to 
sovereignty from economic coercion during U.S. President Donald Trump's trade 
war.

   MONTREAL (AP) -- Canadian Prime Minister Mark Carney and the European 
Union's top official pushed Thursday to make Canada the bloc's first "associate 
member" and build a broader alliance open to other countries as they warned of 
threats to sovereignty from economic coercion during U.S. President Donald 
Trump's trade war.

   Speaking in Montreal on Thursday, European Commission President Ursula von 
der Leyen said Canada and the EU would form the core of the proposed "Alliance 
for the Future," but other like-minded countries would be welcome to join.

   Echoing Carney's warning at the World Economic Forum in Davos in January, 
von der Leyen said economic relationships once considered sources of stability 
were increasingly being used as instruments of pressure.

   "When trade becomes a tool of economic pressure, it is families that pay the 
price, from the supermarket shelf to the cost of a new car," she said. "We are 
seeing in real time our sovereignty being attacked."

   Carney said the alliance would help Canada withstand economic shocks and 
prevent foreign governments and technology companies from dictating its choices.

   "Why does sovereignty matter in a dangerous and divided world? It allows us 
to withstand shocks," Carney said at a news conference. "It allows us to live 
our lives as we choose."

   Von der Leyen said the broader alliance would go beyond Canada's potential 
associate membership, focusing on critical minerals, resilient supply chains, 
defense and security.

   "This is a wider concept," she said at a business roundtable alongside 
Carney. "Other like-minded trusted partners are welcome."

   Trump has suggested Canada's proposed EU arrangement could be a "hostile 
act" and threatened tariffs on Europe if he considered it unfriendly. Asked 
Wednesday about possible retaliation, a senior Canadian government official 
told reporters the closer relationship was not directed against the United 
States but reflected longstanding shared interests.

   The White House said Thursday that U.S. trade and commerce officials had 
held discussions with their Canadian counterparts in recent days. The statement 
came in response to a question about Canada's pursuit of closer ties with the 
EU.

   Carney played down the importance of the "associate member" designation, 
which von der Leyen continues to champion despite resistance from some European 
governments.

   "This new alliance is not a marketing exercise. The name doesn't matter," he 
said.

   Carney later used the term "associate member" himself while sitting beside 
von der Leyen at a business roundtable, emphasizing the economic opportunities 
closer cooperation could create.

   The summit puts Carney's vision for a new global order to the test. At 
Davos, he warned that the U.S.-led international order was breaking down and 
economic integration was increasingly being weaponized. He urged middle powers 
to unite against coercion by more powerful countries.

   "We can no longer let ourselves be shackled by the limits of the old-world 
order," von der Leyen said Thursday. "We need to imagine partnerships that are 
built on trust and driven by common interests and beliefs. As Mark Carney has 
said, the international order will also be built from Europe, with Canada as 
part of it."

   Von der Leyen stands by her plan for Canada's new status 

   Some EU member states have questioned the "associate member" designation 
proposed last month by von der Leyen, but she showed no sign Thursday of 
abandoning the idea.

   "Canada cannot become a full-fledged member of the EU because of geography, 
but we both want to bring our relationship to the highest level possible," she 
said. "This is why we are discussing the idea of Canada becoming the first 
associate member of the European Union."

   Von der Leyen described the proposed relationship as an "association without 
accession," saying it could bring Canada closer to EU membership than any 
previous arrangement with a country outside the bloc.

   Anand Sundar, a special adviser at the European Council on Foreign 
Relations, said France and Germany are among the countries unhappy with the 
designation and that it may not survive the summit.

   "The fact that member states have rejected the associate membership framing 
is very embarrassing for von der Leyen," Sundar said.

   Carney has ruled out formally joining the EU and said any enhanced 
partnership would face a vote in Canada's Parliament.

   An alliance without membership 

   The summit is expected to launch an "Alliance for the Future," a framework 
for closer cooperation on trade, defense, critical minerals, technology and 
research.

   Von der Leyen said Canada and the EU would finalize an agreement Friday 
giving Canadian companies, startups and researchers access to Europe's network 
of 12 supercomputers, strengthening cooperation on artificial intelligence.

   Carney announced Thursday that Canada would invest up to C$1.6 billion ($1.1 
billion) in Canadian artificial intelligence company Cohere, which announced 
plans in April to merge with Germany's Aleph Alpha. He said Cohere would remain 
Canadian and invest at least C$1.7 billion ($1.2 billion) in new computing 
infrastructure in Canada.

   Carney said Canada would not wait for the future of artificial intelligence 
to be decided elsewhere by people it does not know or trust.

   Von der Leyen announced plans to strengthen strategic supply chains and 
encourage joint investment in industries critical to economic security.

   Economic and defense ties 

   Canada is the only non-European country participating in the EU's 
150-billion-euro ($167-billion) SAFE defense procurement program, allowing 
Canadian companies to take part in joint European military purchases.

   But deeper defense cooperation faces obstacles. Sundar said France is 
pushing for strict "Made in Europe" rules that could limit Canadian companies' 
access to future EU defense spending, while Germany favors broader 
participation.

   The two sides already have a sweeping free trade agreement, known as CETA, 
that eliminated most tariffs.

   The United States accounted for 71.7% of Canada's merchandise exports in 
2025. Carney wants to double exports to other countries over the next decade.

   Canada and the EU are seeking closer cooperation on critical minerals as 
both sides work to diversify supply chains. Von der Leyen said the value of EU 
imports of Canadian critical raw materials rose 62% last year to 3.3 billion 
euros (C$5.18 billion), including lithium, cobalt, nickel and graphite.

   Tobias Gehrke, a senior policy fellow at the European Council on Foreign 
Relations, said the disagreement over terminology was unlikely to derail closer 
cooperation.

   "There is no magic shortcut to rapidly reducing Europe's and Canada's 
reliance on the U.S. economy and military -- not least since Washington might 
retaliate," Gehrke said. "But the political window is now wide open to take a 
much bigger step than was previously conceivable."