Canada and EU pursue broad economic partnership focused on trade, security and critical minerals Prime Minister Mark Carney and the European Union are exploring a broad partnership covering trade, defence, energy, research and labour mobility. The proposed arrangement would build on existing agreements but would not make Canada an EU member. OTTAWA - Prime Minister Mark Carney and the European Union are pursuing a broad new economic partnership that could cover trade, defence, energy, critical minerals, education and labour mobility. Officials are expected to discuss the initiative during Carney's visit to the European Parliament in Strasbourg this week. The discussions will be followed by an EU-Canada summit on Oct. 29 and 30 in Canada. Carney is expected to host European Commission President Ursula von der Leyen and European Council President Antonio Costa. EU Ambassador to Canada Geneviève Tuts said both sides are considering something unique that would build on an existing strategic partnership agreement and the Canada-EU free trade deal.Officials are first identifying possible areas for co-operation before deciding how formal negotiations should be structured. Media reports have described a sweeping partnership. The Wall Street Journal reported that Carney was exploring whether Canada could become an associate member of the European Union, although no such status currently exists. We're not looking to become a member of the European Union, Carney told reporters Sunday.He said Canada and the EU were seeking a unique alliance based on similar values and priorities, combined with very complementary strengths. The proposed arrangement is not expected to be completed during Carney's Strasbourg visit. It's not going to be solved this week in Strasbourg, to be clear, Carney told Bloomberg News in a filmed interview published Monday. It's the start of a process, but it's a start of a high-ambition process, he said.Carney told Bloomberg that possible elements include enhanced labour mobility, educational opportunities and research co-operation. Achim Hurrelmann, co-director of the Centre for European Studies at Carleton University, said both sides appeared to be scrambling for ideas of what to include. He said the final agreement could combine several policies that are not directly connected. Possible measures include co-operation on a European stockpile of critical minerals, university student exchanges and a digital trade agreement.The discussions could also encompass investment, artificial intelligence, defence and energy. Renew Europe, one of the eight political groupings in the European Parliament, describes itself as the European sister political family of Canada's Liberal party. In March, the group proposed a NATO-style trade pact involving Canada, Japan and South Korea. Such a pact would harmonize export controls among its members to protect them from economic coercion by the United States and China.Renew Europe last week called for a strategic association with Canada covering trade, investment, critical minerals, energy, artificial intelligence, research, student exchanges, defence and labour mobility. Canada and the EU have both been affected by U.S. President Donald Trump's policies, which have disrupted decades of integrated trade and defence relationships.Some U.S. Republicans say Trump wants NATO members to bear more of the cost of their defence and wants Americans to receive more benefits from preferential European access to the U.S. market. Trump has also repeatedly threatened the sovereignty of Canada, Iceland and Greenland, which is part of the Kingdom of Denmark. His administration has targeted institutions including the International Criminal Court and the World Trade Organization, which countries rely on to limit the influence of superpowers.Canada became the first non-European partner in the EU loan program for joint defence projects known as Security Action for Europe, or SAFE. So far, only one contract involving Canada has emerged from the program. The EU has roughly 450 million residents, compared with about 340 million people in the United States.However, it remains unclear whether European markets could absorb the goods and services that Canadian companies have spent decades selling to the United States. Carney's landmark January speech at the World Economic Forum in Davos, Switzerland, called on middle powers to strengthen economic and security ties in response to coercion by great powers. In May, however, he also said that a strong Canada will help make America great again. Europe has strong reasons to seek closer economic ties with Canada.The continent lacks easy access to several key commodities, including oil, gas and the critical minerals needed to produce electric vehicles. Fuel deposits near Norway and the Netherlands, along with renewable energy sources, have not been sufficient to meet industrial and consumer demand. Much of Europe relied on Russian gas until Moscow launched its full-scale invasion of Ukraine in 2022. The war involving Iran has further choked critical supply lines and pushed fuel costs higher in Europe.European officials have for years discussed Canada as a potential major supplier of rare earths and liquefied natural gas. The proposal has also drawn criticism in Canada. Conservative MPs have opposed a close partnership with Europe and compared the idea of associate membership with Trump's talk of annexing Canada. Critics also point to the slow implementation of the Comprehensive Economic and Trade Agreement, known as CETA.Ten EU countries, including G7 members France and Italy, have still not ratified the agreement, which took effect nine years ago. CETA has significantly increased European exports to Canada, although the rise in Canadian exports to Europe has been smaller. Conservative MP Adam Chambers recently called for the immediate ratification of CETA by the remaining EU countries and for an end to European restrictions on some Canadian food imports.Some analysts warn that Carney's focus on Europe could reinforce the view in Asia that Ottawa prioritizes its historical relationships over a younger region with faster economic growth. They say Canada must avoid allowing closer European ties to weaken its relationships across the Indo-Pacific. Hurrelmann said the EU is also careful when designing partnerships because of its relationship with the United Kingdom.Britain's departure from the bloc had profound effects on both sides of the English Channel, while Brussels has signalled that it wants closer ties with the U.K. The Wall Street Journal reported that some European officials worry Carney may be seeking stronger ties with the EU mainly to gain leverage in trade negotiations with Washington. European countries also frequently face difficulties created by barriers to trade between Canada's provinces. The scope of the proposed partnership therefore remains unsettled.For now, Canada and the EU are discussing a framework that could join existing trade ties with new co-operation on security, resources, technology, education and labour, while stopping well short of Canadian membership in the European Union.