Canada is looking for a deeper partnership with the European Union. After trade talks with the United States broke down, Ursula von der Leyen, the President of the European Commission, told the European Parliament she would explore the possibility of Canada coming the first-ever associate member of the European Union. Recently on The Drew Mariani Show, Veronique de Rugy of the Mercatus Center covered the fragile US-Canada partnership. 

Prime Minister Carney 

During his speech to the European Parliament, Canadian Prime Minister Mark Carney called out what he sees as the “weaponization of trade” and bemoaned the weakening of “the multilateral institutions on which we relied.” Carney told Bloomberg News that a deeper partnership with Europe would be “a huge opportunity for both of us to build our sovereignty.” He also said that partnership might result in increased labor mobility. 

Trump’s Reaction 

President Trump told reporters he thought the idea of Canada joining the European Union “laughable.” The President went on to criticize Canada as a trading partner and said if he thinks the move is hostile he would “put serious tariffs or stop trading with Europe on many things.” 

Trade Talks 

After the failed trade talks, President Trump signed executive orders banning Canadians imports of “dairy products, alcoholic beverages and motorcycles,” according to the Wall Street Journal. 

Despite the friction between the two countries, Trump said he thinks a deal could be reached soon. Carney said “there is a mutually advantageous agreement that is possible between Canada and the United States” and said he is ready to sit down with the US. 

“I can guarantee you that there are a lot of people in the Trump administration telling the president we need to make a deal,” de Rugy said. 

de Rugy told Drew that the US and Canada would benefit from the status quo ante where 94% of US good went into Canada tariff free. The free trade agreement, ratified by NAFTA and then later USMCA helped the US and Canada integrate supply chains, which “benefits us a great deal,” de Rugy said.