The romance between Canada and the European Union gets serious

0:00This message comes from NPR sponsor Charles Schwab with its original podcast on investing. Each week you'll get thoughtful, in-depth analysis of both the stock and the bond markets. Listen today and subscribe at Schwab.com slash on investing or wherever you get your podcasts. Today on State of the World, the romance between Canada and the European Union gets serious. You're listening to State of the World from NPR, a human perspective on global events. I'm Greg Dixon. For decades, the European Union and Canada have each had strong bonds with the United States. In trade, diplomacy, military cooperation, their close relationships with the US were taken as a given. But the Trump administration has shaken up that status quo with tariff wars and other demands on allies. So the EU and Canada are now looking at each other and thinking, maybe.

1:00As Terry Schultz and Brussels tells us, their relationship might soon have a special status. In her annual State of the Union speech, European Commission President Ursula Von der Leyen offered her special guest, Canadian Prime Minister Mark Karney, whom she calls dear Mark, a new alliance. Both the EU and Canada are looking for new partners to leverage increased threats, tariffs, and tirades leveled by President Trump against them. Von der Leyen emphasized the move is not, quote, against anyone, but she clearly had someone in mind. Dear Mark, Europe and Canada believe in democracy. That power does not belong to the strongest richest and loudest, but to all of us. So I would like to work with you on opening the door for Canada to being the first associate member of the European Union. The two exchanged immediate pecs on cheeks before a full chamber at the European Parliament

2:02as dignitaries and lawmakers gave the suggestion a standing ovation. This moment has been drawing closer with every Trump step that alienates either Canada or Europe. Karney is viewed with admiration by many Europeans, particularly for his speech at the World Economic Forum in January, calling on middle powers to band together against economic, quote, coercion. Remkortwegg is with the Klingindell Institute, a Dutch think tank. So all of the sudden Mark Karney is bombarded as almost this honorary hero of what Europeans are actually saying to themselves behind closed doors, but he said it out loud. Canada has been under quite a bit of pressure from the US president. And across Europe, there is this realization, well, perhaps we need to keep Canada closer to us. Thus the sudden creation of this new special status to do that, but the problem is an associate membership with the EU doesn't exist and it's not exactly clear what it would mean. And this is where things become tricky. Kortwegg says Karney has made clear he doesn't want to fully integrate with the EU's single

3:07market. Canada and the EU already have a free trade deal, though Karney is expected to pressure the 10 countries that haven't yet ratified it. The two sides signed an agreement deepening security cooperation in 2025. And this year, Canada became the only non-European country allowed to participate in the blocks 150 billion Euro fund for joint defense purchases. So what's the point? The main thing is that we have momentum now created by friction in our relationship with Washington. Jason Weisman, a Canadian working in the European Parliament, says there's huge potential to tap. Things like critical raw materials, we've got a wealth of small media enterprises making mission critical software, emerging disruptive technologies, especially drones. Weisman says he hasn't met anyone in the European Parliament who's against the associate membership idea, but that may not be true in EU capitals, judging from reports that some governments are furious they were not consulted before Von Delaan's offer. Aaron Gashbrunette, an analyst with the Center for Strategic Statecraft in Canada, says

4:10there's similar confusion there. Jason There's a lot of excitement about what associate membership means when it does not in fact exist, among people who would support closer ties to the EU. And then this is also becoming a partisan issue in Canada with the opposition now saying, well, please explain what powers you're willing to give up to Brussels and what you would get in return. On Thursday, Mark Carney will get a chance to do that, as it will be his turn to talk to the European Parliament about where he thinks this political romance is headed. For NPR News, I'm Terry Schultz and Brussels. This message comes from designer shoe warehouse. You know that feeling when you find shoes you love at a great price and want to tell everyone about it, find something to brag about at designer shoe warehouse, like the latest styles from brand you love, the trends everyone's obsessing over and shoes that make you

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