Lably
Skip to content

Canada–European Union relations

Bilateral relations

  • 33 min read
  • 8 chapters

Related on Lably

Through Canada, European Union and Europe

Amid global geopolitical tensions of the 2020s, the trade war between the US and Canada, as well as US threats to annex Canada, discussions about a possible Canadian accession to the European Union have emerged. This idea has seen growing public support in opinion polling. However, current leadership on both sides have rejected the prospects of full membership. Instead, in September 2026, European Commission President Ursula von der Leyen invited Canada to work together "on opening the door for [it to become] the first associate member" of the EU. Canadian Prime Minister Mark Carney welcomed this idea by calling for further "deep cooperation". Because the "associate membership" category does not officially exist under the EU treaties, it would first need to be legally defined and then ratified by all EU member states. Some political observers have interpreted the "associate membership" label as another term for much deeper cooperation without an actual intent to pursue the creation of any new official legal membership status. Areas that might be covered by such an alliance in the future could include cooperation on economic security, energy security, advanced manufacturing, critical minerals, defence production, AI and information technology, quantum computing, batteries, payments, the Arctic, space exploration, research, as well as easier mobility for workers and students, including Canadian membership in the Erasmus programme. However, as of 2026, talks regarding the specific framework of such closer ties are still at an early stage.

History

Background

Canada's relationship with Europe is a result of the historical connections generated by colonialism and mass European immigration to Canada. In the Middle Ages, Canada was first colonized by Vikings on the shores of Baffin Island, along with those of Newfoundland and Labrador. However, centuries later in the Modern Age, it would be mainly colonized by France and, after 1763, it formally joined the British Empire after its conquest in the Seven Years' War. In addition, it also had colonial influence from Spain in British Columbia, as well as southern Alberta and Saskatchewan. As a consequence, today, many Canadians are native English and French speakers; both being European languages. In addition, several local provincial and federal government offices of Canada practice official bilingualism in these working languages.

Historically, Canada's relations with the UK and the United States were usually given priority over relations with continental Europe. Nevertheless, Canada had existing ties with European countries through the Western alliance during the Second World War, the United Nations, and NATO before the creation of the European Economic Community.

1958–1980s: Early relations

Relations between Canada and the European integration project began shortly after the creation of the European Economic Community (EEC), the predecessor of the European Union. In 1958, Canada became the first non-member state to appoint an ambassador to the EEC. The following year, Canada and the Euratom signed the Agreement for Cooperation in the Peaceful Uses of Atomic Energy.

During the 1960s, Canada's trade and diplomatic relations remained primarily focused on the United States, while economic relations with the six-member European Community were comparatively limited.

The relationship became more important in the early 1970s when Canadian politicians wanted to diversify the country's economic ties following economic disruptions in the United States as well as their neighbor's introduction of a 10% import tariff. As a response, Canadian Prime Minister Pierre Trudeau started moving towards a "Third Option" foreign policy by pledging to diversify trade and to strengthen ties with the European Economic Community. The accession of the United Kingdom to the European Communities in 1973 further increased Canadian interest in strengthening its relations with Europe. In fact, more structured Canada–European Communities dialogue, including informal “semi-annual” or “high-level” meetings had already begun as early as 1972, though they were not consistently held twice per year. Many of the so-called “high-level” meetings were in practice conducted at the level of assistant deputy minister for Canada and deputy director-general of the European Commission. Efforts to negotiate preferential trade arrangements, however, were complicated by concerns among some European leaders regarding Canada's close economic integration with the United States. Since 1974, members of the Canadian Parliament and the European Parliament have met regularly.

Bilateral cooperation on the environment dates back to an exchange of letters in 1975, which identified areas of common interest and established a framework for periodic high-level consultations to review progress. High-level meetings under this framework have been held regularly since 1983. The European Commission established a diplomatic presence to Canada in 1976. In July of that year, the European Communities and Canada signed the Framework Agreement on Economic Co-operation, the first formal agreement of its kind between the European Communities and an industrialized third country. In this agreement both sides committed to expanding and diversifying their bilateral trade, and created the Joint Cooperation Committee that convenes at least annually as the primary common institutional body for overseeing implementation and further cooperation. However, this link did not lead to a wide area of specific programs of cooperation, but instead "withered away through mutual neglect". In 1979 Canada became a cooperating state of the European Space Agency. Despite general further approachment between the two allies during the 1970s, results remained relatively limited.

During the 1980s, cooperation remained steady but largely incremental, characterized by a “piecemeal approach” in which numerous small sectoral agreements were concluded alongside collaboration in multilateral institutions. In 1981, Canada and the EEC signed a Long-Term Fisheries Agreement to manage access to fish stocks and promote sustainable practices. Initiatives of the 1970s aiming for closer ties between Canada and the European Communities stalled after conservative Prime Minister Brian Mulroney took office following the 1984 Canadian federal election. Instead, the focus shifted towards negotiations with U.S. President Ronald Reagan that would ultimately lead to the Canada–United States Free Trade Agreement in 1988 and the creation of the North American Free Trade Agreement in 1994, which increased Canadian dependence on the US. This move faced domestic Canadian opposition from critics concerned about American hegemony, with some protestors wearing pins stating "51st state: Mulroney for Governor". Due to the creation of the European single market, in the late 1980s and the 1990s Canadian companies started to increasingly invest in Europe to prevent being excluded from that market, which was considered a protectionist "Fortress Europe".

1990s–2000s: Expansion of cooperation

With the end of the Cold War the idea of multilateralism gained in popularity. Thus, Canada and the European Communities expanded their cooperation beyond economic matters to also include foreign policy and international security issues. In 1990, European and Canadian leaders adopted a "Declaration on Transatlantic Relations", which established regular meetings at Summit and Ministerial level. However, the declaration itself remained vague regarding details of further cooperation.

In 1992, an international arbitral tribunal resolved a long-standing maritime boundary dispute between Canada and France regarding the exclusive economic zone surrounding Saint Pierre and Miquelon. In the mid-1990s, disputes between Canada and EU member states, especially Spain and Portugal, over North Atlantic turbot fishing escalated into the so-called Turbot War. Allegations of overfishing and quota violations led Canada to take strong actions, including firing warning shots at, and seizing Spanish vessels in international waters using patrol vessels. The confrontation ended with an agreement that favored Canada’s conservation goals, but it had a temporary negative impact on diplomatic relations with Spain and the EU.

At the 1996 Ottawa Summit, both sides adopted a Joint Political Declaration and Action Plan that identified new areas for cooperation. While the objective was to strengthen bilateral relations and the declaration touched upon areas like trade policy, environment, investment, competition, labor standards, and intellectual property rights, it did not include many details yet. Nonetheless, from then onwards Canada increasingly prioritised the EU in its foreign policy. This rapprochement included the 1996 Agreement on Scientific and Technical Cooperation, as well as agreements on customs cooperation and on sanitary measures for the protection of human and animal health in trade that were concluded in 1998. In 1999, both sides signed an agreement on the application of competition laws.

In 1999, leading business representatives established the Canada Europe Roundtable for Business (CERT), which became an important advocate of deeper economic integration and a comprehensive free trade agreement between Canada and the EU.

Since 2003, Canada has participated in 13 civilian and military missions of the EU's Common Security and Defence Policy (CSDP). Further sectoral cooperation followed in 2004 with an agreement on trade in alcoholic beverages, alongside the broader EU–Canada Partnership Agenda, which included provisions regarding the negotiation of a "trade and investment enhancement agreement" and the development of a "voluntary framework for regulatory cooperation". In 2005, both parties concluded an agreement establishing a framework for Canada’s participation in EU crisis management operations. The Agreement on civil aviation safety was signed in 2009.

2010s–2020s: Strategic partnership

In previous decades, different proposals for a Canada-EU free trade agreement (FTA) did not come to fruition, which was mostly due to hesitancy from the EU. However, after broader WTO international trade negotiations began to stall with the Doha Round, in 2006 the EU opened the doors to bilateral FTAs with the publication of its Global Europe policy document. In January 2007, Premier of Quebec Jean Charest called for an FTA with the EU. Shortly after, the Canadian government also began advocating for negotiations of a Canada–European Union free trade agreement. This led to the 2007 EU-Canada Summit in Berlin where the highest-level leaders of the EU and Canada met in-person for the first time since 2005. A joint study on the impact of further trade was published by the Canadian government and the European Commission in 2008. Following the May 2009 EU-Canada Summit in Prague, which called for a "comprehensive economic partnership agreement", formal negotiations were launched in June 2009.

On 30 October 2016, the "Strategic Partnership Agreement between the EU and its Member States, of the one part, and Canada, of the other part" was signed in Brussels. This agreement seeks to deepen political dialogue and cooperation between the EU and Canada and to strengthen relations in fields such as human rights, international peace and security, economic and sustainable development, justice, freedom and security. The agreement provisionally entered into force on 1 April 2017. After intense negotiations, the Comprehensive Economic and Trade Agreement (CETA) that has been applied since 2017 and is possibly the farthest-reaching free trade agreement between the EU and a third country, was concluded.

Geopolitical developments of the 2020s led to further strengthening of bilateral ties. In 2021, Canada became a third-state participant in the EU's Permanent Structured Cooperation (PESCO). In light of the Russian invasion of Ukraine, in June 2022, Canada and Denmark peacefully resolved their long-running "Whisky War" by signing an agreement to split Hans Island, thus establishing the first land border between Canada and an EU member state. Canada also strengthened its participation in European research initiatives by becoming an associated member of Horizon Europe in 2024. In June 2025, Canada and the EU signed a Security and Defence Partnership to expand cooperation in areas such as defence industrial cooperation and participation in European defence initiatives like SAFE, the EU's joint procurement initiative, that it joined in 2026.

After becoming Canadian Prime Minister in March 2025, Mark Carney broke the tradition of first visiting the US, by instead opting for France, an EU member state, for his first foreign visit. This decision was seen as a reaction to US threats to annex Canada and as a way to forge stronger relationships with Europe. In October 2025, Carney appointed diplomat John Hannaford as Canada's special prime ministerial envoy to the EU. However, the European Commission did not appoint a counterpart, Dutch civil servant Joost Korte, until two months later. According to European and Canadian officials, this delay was due to the fact that several European leaders, including Italian Prime Minister Giorgia Meloni and British Prime Minister Keir Starmer, expressed concern about measures that could provoke the United States.

In March 2026, the European Parliament adopted a report calling for deeper EU-Canada cooperation to tackle security threats and boost trade amid rising geopolitical threats. Although not directly related to the EU, Canada joined the European Broadcasting Union as a full member in June 2026, and is thus set to participate in the Eurovision Song Contest for the first time in 2027. In September 2026, Prime Minister Mark Carney said Canada was pursuing a "unique alliance" with the European Union, while ruling out full EU membership. Discussions reportedly included reducing trade barriers, while improving infrastructure and cooperation, and potentially allowing Canadians to live and work in the EU without visas. Shortly after, the European Parliament announced that it would open an official representation in Ottawa, the Canadian capital, to strengthen ties with Canada. Later that month, European Commission President Ursula von der Leyen and Canadian Prime Minister Mark Carney announced the idea of working "on opening the door for [Canada to become] the first associate member" of the EU by calling for more extensive "deep cooperation".

Sign in to keep reading

7 more chapters are free with a Lably account.

More in Politics and economics