On September 16, 2026, European Commission President Ursula von der Leyen extended an unprecedented invitation to Canada during her annual State of the Union address to the European Parliament in Strasbourg, declaring her desire to work with Prime Minister Mark Carney on opening the door for Canada to be the first associate member of the EU.
Prime Minister Carney welcomed the proposal, rising to embrace von der Leyen to a standing ovation from the chamber. On September 17, he addressed the European Parliament directly, confirming Canada’s commitment to pursuing what is being called an “Alliance for the Future.” Negotiations are expected to follow, with the parties aiming to move beyond the existing Comprehensive Economic and Trade Agreement (CETA) toward a broader common prosperity and economic security space.
Background
Prime Minister Carney has clarified that Canada is not seeking to become a full member of the European Union but is instead pursuing what he called a “unique alliance” with the bloc. Canada's incoming EU ambassador, Jonathan Wilkinson, has indicated that both sides are focused on driving results in specific sectors and are still defining the right term for the enhanced partnership. Details are expected to be announced at the Canada-EU Summit in Montreal on October 29 and 30, 2026.
Building on a foundation of bilateral agreements
The associate membership proposal builds on a strong and growing foundation. Over the past 18 months, Canada has entered into a series of bilateral agreements with individual European countries that have served to deepen its strategic ties across the continent. The contemplation of a formalized associate membership may, in part, represent a more efficient mechanism to administer the web of new strategic relationships that have evolved as a result of changing geopolitical circumstances.
Key examples include the following:
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Germany:
In July 2026, Prime Minister Carney and German Chancellor Friedrich Merz announced the launch of negotiations toward a Canada-Germany Strategic Partnership Agreement, covering security and defence, technology, artificial intelligence and space, supply chains and critical minerals, energy, and investment, with the goal of finalizing the agreement before year-end. This followed a partnership on critical minerals and energy announced during Prime Minister Carney’s visit to Berlin in August 2025. In December 2025, the two countries also launched the Canada-Germany Digital Alliance to advance bilateral collaboration in artificial intelligence, digital infrastructure, digital sovereignty, quantum technologies, and related areas.
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Spain:
In September 2025, Canada and Spain signed a General Security of Information Agreement, the framework enabling the exchange of classified defence and security information between the two countries. In December 2025, the two countries issued a joint statement aiming to double two-way trade, with a focus on economic security, critical minerals, clean energy, advanced manufacturing, and defence cooperation. In May 2026, Canada and Spain signed a memorandum of understanding on artificial intelligence cooperation.
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Italy
In October 2025, Canada and Italy launched an inaugural Bilateral Energy Dialogue on the margins of the G7 Energy and Environment Ministerial Meeting, building on a joint statement by Prime Minister Carney and President of the Council of Ministers Giorgia Meloni. The dialogue covers critical minerals, nuclear energy, LNG, and energy security. Italy and Canada have also signed a Joint Statement on Critical Minerals and Critical Raw Materials Cooperation and endorsed a Roadmap for Enhanced Cooperation.
These bilateral arrangements collectively demonstrate the breadth and depth of Canada’s strategic reorientation toward Europe and underscore why a more comprehensive framework may be warranted.
Key sectors and industries in focus
The proposed partnership covers a broad range of sectors that will be of significant interest to businesses operating across Canada and the EU, including:
- Energy
- Critical minerals and batteries
- Artificial intelligence and quantum computing
- Defence and security
- Advanced manufacturing and technology
According to reports, both sides are negotiating arrangements that would permit the free flow of goods, services, and workers across key strategic supply chains—spanning energy, AI, defence, and critical minerals. If realized, this would effectively extend certain aspects of the EU's single market framework to include Canada in those sectors. This arrangement could provide greater market integration as allies work to meet NATO spending targets and protect digital sovereignty.
On the people-to-people front, Prime Minister Carney has been in regular contact with senior European leaders to explore the prospect of visa-free living and working arrangements for Canadians across the EU. Ottawa is also reportedly already engaged in discussions with Brussels about Canadian participation in the Erasmus+ exchange program and Horizon Europe research grants, as well as frameworks for the mutual recognition of professional qualifications.
What this means for businesses
For Canadian businesses, the proposed alliance represents a potentially transformative opening to the EU single market—the world's largest—particularly in the energy, critical minerals, defence, and technology sectors. Firms in these industries should closely monitor the Canada-ED Summit in Montréal this October for concrete details on market access, regulatory alignment, and procurement opportunities.
For European businesses and investors, the arrangement may significantly ease entry into the Canadian market, particularly in strategic sectors where both sides are seeking to build resilient supply chains beyond U.S. dependence. The proposed alignment of industrial policies and potential mutual recognition of qualifications could reduce regulatory friction for European companies establishing or expanding operations in Canada.
Looking ahead
It is important to note that significant practical hurdles remain. The “associate member” status does not yet exist in EU governance and key questions, including whether Canada would have any voting rights in EU institutions, remain unanswered. The experience with CETA itself is instructive. Despite having been concluded over a decade ago and in provisional effect for nine years, the agreement has encountered sustained political resistance in parts of Europe and remains unratified by several EU member states. Any deeper integration framework will likely take considerable time to negotiate and implement.
The Canada-EU Summit is expected to be the venue where more detailed terms of the partnership are announced. Prime Minister Carney is also expected to meet with French President Macron on September 20 in Saint Pierre and Miquelon, a French overseas territory located just off Canada's Atlantic coast and the closest piece of European territory to Canada. The choice of location is highly symbolic: it underscores the geographic and strategic proximity that makes deeper Canada-EU integration a natural proposition. The visit would also mark the first official visit by a sitting Canadian prime minister to the archipelago.
Gowling WLG will continue to monitor these developments closely. Our teams in Canada and across Europe are well positioned to advise clients navigating the legal, regulatory, and commercial implications of this evolving partnership. If you have questions about how these developments may affect your business, please contact your Gowling WLG advisor.
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