European Union eyes Canada as It's First 'Associate Member'

European Commission President Ursula von der Leyen wants Canada to become the first “associate member” of the European Union, she said in her annual State of the Union address on Wednesday.

Von der Leyen's comments came during her annual speech at the European Parliament in Strasbourg, France, while Candanian Prime Minister Mark Carney was in attendance.

This comes days after the Wall Street Journal reported that Carney was exploring an "associate membership" with the bloc, a position that does not currently exist. 

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen said in her speech to European lawmakers.

Von der Leyen also announced a comprehensive new “Alliance for the Future,” built on the existing EU-Canada trade deal that would “create a common prosperity and economic security space.”

The nine-year-old CETA accord has, however, yet to be ratified by national and regional parliaments in 10 EU member states.

Von der Leyen’s initiative comes as Brussels and Ottawa seek to forge closer ties while both grapple with a costly trade war with the United States. Von der Leyen nonetheless insisted that the new partnership is “not against anyone else.”

While the plans are still light on detail, von der Leyen pledged to work on intelligent manufacturing, creating a tech alliance and integrating defense industries. In addition, the two sides will “make the Arctic a flagship joint project. We will work on energy, critical minerals and batteries. On AI, quantum, cyber and economic security," she said.

Carney will address the European Parliament on Thursday.

Earlier this week, Carney responded to the story, saying he sought a "unique alliance"with the bloc and not a membership. 

"Partnerships are a ​strategic ‌choice for Europe. But they also respond to the fracture ‌in the international rules-based system," ‌von ​der Leyen said in her annual State of the European Union ​address.

"We see the world with the same ⁠eyes: ​from AI ​to climate change, from the Arctic ​to geopolitics. And ‌we have stood together: on Ukraine, on ​defense, ⁠on raw materials and on supply chains. ⁠But ​above all ... Europe and Canada believe in democracy," she said.

The EU and Canada, which have already grown close amid conflicts and trade wars, are looking to partner with each other to diversify from China and the United States respectively. 

Canada and the EU will hold a summit at the end of October in Montreal. They also aim to reach a deal on digital trade by the end of the year.