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Ursula von der Leyen formally invited Canada to become the EU’s first associate member during her State of the European Union address in Strasbourg.
Prime Minister Mark Carney was present in the European Parliament and responded positively, embracing von der Leyen as lawmakers applauded.
The proposal comes as Canada seeks to diversify its economic partnerships away from the United States, where around 70 per cent of Canadian exports traditionally go.
Reporting says the idea would expand cooperation beyond the existing CETA trade agreement into areas such as defense, technology, energy, manufacturing, AI, critical minerals and Arctic policy.
More context
The plan is not full EU membership and remains undefined in EU treaties, with details still unclear and the proposal in its early stages.
Coverage says the idea follows a breakdown in U.S.-Canada trade talks and a tit-for-tat tariff dispute, while also noting legal, political and sector-specific hurdles such as dairy and telecom protections in Canada.