Canada eyes closer EU ties amid US trade tensions

Canada's Prime Minister Mark Carney has given his clearest hints yet that he wants a closer alliance with the European Union, at a time when they are both facing increased trade hostility from longtime ally, the United States.

The former governor of the Bank of England is in Europe this week to attend European Commission President Ursula von der Leyen's State of the Union address in France, before delivering his own speech to members of the European Parliament. On the same trip, he is also scheduled to meet British Prime Minister Andy Burnham.

At this year's Davos summit in January, Carney spoke of the need for what he called the world's "middle powers" to come together against a US-dominated world order, which he said was experiencing a "rupture, not a transition".

Since then, he has grown diplomatically closer to Europe. In an interview with the Financial Times conducted just before his departure for the latest visit, Carney spoke of wanting to further the cause of a "unique alliance" between his country and the 27-member bloc.

"We see opportunities to deepen our cooperation with Europe," he said, picking out people-to-people exchanges, research ties and the defense industry as areas where "in a form of deeper partnership, a form of alliance, we can drill down and have better outcomes for Europeans and Canadians".

The remarks build upon others reported in The Wall Street Journal that said the EU was open to the idea that Canada could become an "associate member" of the bloc. Carney has also reportedly instructed some of his closest advisers to "scope out the most ambitious possibilities short of full membership".

"We have the same priorities, and we have very complementary strengths," Carney added. "We're stronger together. And this is at a time when the world is more dangerous and divided, and friends need to stick together at these times."

Carney has previously promised to fight fire with fire in the ongoing tariff dispute with the US. In a video address, he said he was prepared to take the country in a new direction in the name of economic security.

"We have everything we need to pivot and prosper … that pivot will come at a cost," he said. "There's always a cost to action, but it doesn't come close to the cost of standing still."

The BBC reported that Canadian universities have already begun recruiting increasing numbers of academics from US institutions, and Carney's Liberal Party won three parliamentary special elections at the start of the month, suggesting that voters back his stance over the issue.