EU Backs Away From Canada 'Associate Member' Offer as Draft Summit Text Promises Only an 'Ever Closer Association'

The European Union has backed away from its offer to Canada to start talks on becoming an associate member, after disagreements between member states just as an EU-Canada summit was set to begin in Montreal.

A draft of the joint statement to be issued at the end of the summit, which runs Thursday and Friday, showed a watered-down version offering an ever closer association of Canada to the EU, short of full membership itself, instead of associate membership talks.

The draft communique states the two sides would work to define by the 2027 EU-Canada summit the concept of an ever closer association of Canada to the EU, short of full membership itself, to reflect their common endeavour and cooperation towards shared goals of prosperity, economic security and strategic autonomy.

The issue was triggered last month, when European Commission president Ursula von der Leyen surprised nearly everyone by announcing in her state of the union address that the EU would consider associate membership for Canada.

The declaration had been hailed as a landmark in EU history, offering a non-EU country such close ties to the bloc, which has not allowed any state membership since Croatia joined in 2013. It was also seen as a sign that the call by Canada's prime minister, Mark Carney, at the Davos summit in January for middle powers to work together was paying off.

Associate membership had been mooted, and rejected, previously for countries such as Ukraine. Von der Leyen's declaration caught EU capitals by surprise and led to pushback politically and legally. Given that associate status has no definition, diplomats wondered about such issues as whether Canada could join the European Council, legislative bodies or decision-making processes without a vote.

At a meeting on Monday, EU ambassadors raised concerns about the dramatic offer but vowed to make efforts to seek a diplomatic path to rescinding the offer of associate membership without embarrassing Von der Leyen. Italy suggested keeping associate membership as proposed by the commission, with the definition to be thrashed out later by member states. Germany walked back further, suggesting the wording an ever closer association of Canada to the EU.

One diplomat said nobody was consulted about associate membership apart from Von der Leyen's closest staff, it would seem, and that many member states, including Germany, were not happy. This is all about fixing the plane while it is flying, the diplomat said.

Germany had argued that associate membership should be reserved as an interim step for prospective candidate countries, such as Ukraine or Montenegro, noting that the status has no formal grounding in current EU treaties.

Donald Trump, the US president, previously called the EU's proposal to make Canada an associate member laughable, and said if he interpreted the move as a hostile act the US might stop trading with Europe on many things.

A bitter trade war with the US, a longtime ally, has seen Carney seek out new trading partnerships around the world. Ahead of the summit in Montreal, one of Canada's largest banks released a report suggesting there was meaningful upside for Canada if it were to deepen economic ties with Europe. Tens of billions of dollars in additional trade would be possible if barriers were removed in areas of overlapping interest such as defence, energy, critical minerals and digital markets, TD Economics said. Carney has spoken specifically about the need to lessen reliance on Elon Musk's Starlink satellite network, following a decision to throttle its usage over Ukraine. Earlier this week, Carney posted on social media that Canada would join the Eurovision song competition. But despite fears raised by political rivals, Carney has said Canada has no interest in formally joining the EU, and changing Canadian laws to bring them in line with European nations would probably prove unpopular, despite public support for stronger ties.

Carney told reporters on Tuesday that the summit this week was the launch of further formal negotiations that will take place over another year. The good news, he said, is it does not matter about specific names or nomenclature; what matters is the difference it will make to the lives of Canadians. A previous draft statement had included at least two references to Canada as an associate member, including an acknowledgment that defining the term would take another year. Those references have gone from the new draft.