Canada's finance minister urges UK to join proposed EU alliance

Champagne cites shared values amid escalating US-Canada trade dispute

Canadian Finance Minister François-Philippe Champagne has urged the United Kingdom to join a proposed economic alliance between Canada and the European Union, telling the BBC that the two countries share values and should “team up” amid changes to the global trading environment.

“This is all about the substance, to build an alliance of the future,” Champagne said in the interview. “The world has changed. America has changed. So we need to change.”

The appeal follows European Commission President Ursula von der Leyen’s proposal to offer Canada associate membership in the bloc — a status the EU has not previously extended to any country. Champagne said Prime Minister Mark Carney’s visit to address the European Union in Strasbourg, made shortly after von der Leyen’s proposal, was also intended “to build the alliance of the future.”

Carney, the former Governor of the Bank of England, has previously talked about an alliance of “middle powers” working together on economic growth, resilience and security. Champagne said the proposed partnership is meant to deepen cooperation along those lines.

“We need to look at partnership in a different way, and the great thing is that when you look at Canada, and I would say the United Kingdom, we share the same values. We are very aligned in our vision of the world. Why don’t we team up?” Champagne said. “We are independent and sovereign, but we are stronger together.”

Carney last week pointed to potential Canadian participation in EU programs covering universities, scientific research, artificial intelligence and defence funding, and proposed arrangements for young Canadians and Europeans to “cross the ocean and be able to study and live.” He said Canada could supply critical minerals and gas and would seek access to European advanced technologies.

Both Canada and the EU see the arrangement as a possible template for like-minded nations that may not pursue full membership, such as Australia, according to the BBC. The specific terms of the EU offer have not yet been formalised. Champagne described the moment as “a moment of great opportunities” and said the broader push was intended to strengthen the existing relationship between Canada and the EU.

The appeal comes against the backdrop of an escalating tariff dispute between Canada and the United States. Bilateral trade talks broke down at the last moment in August, with both sides imposing tit-for-tat duties in the weeks since. Champagne said the trade war was not a conflict chosen by Canada, framing the country’s retaliatory measures as a defence of its sovereignty after the United States imposed sweeping global tariffs, including on long-standing trade allies such as the UK.

The country had “stood up for our industries, our workers, our country,” Champagne said. “We responded because at some stage you have to say ‘Enough is enough’. No one can infringe on our economic sovereignty… the world took notice,” he said.

Champagne said Canada’s response was “measured, targeted and strategic… dollar for dollar, tariff for tariff,” and that Canada would “reengage at the right time” with the United States. He said affected industries would be supported “as long as it takes and whatever it takes.” He also argued that Canada’s strong fiscal position had helped its resilience and that the dispute provided a “golden opportunity” to diversify trade.

President Donald Trump, who returned to the White House last year, has threatened further tariffs on the EU if the associate membership plan proved “hostile” to the United States. He called the idea laughable and labelled Canada a “terrible trading partner.”

The proposed Canada-EU alliance raises questions about the UK’s positioning after Brexit, both with Europe and with the United States. The UK renegotiated a trade deal with the US in June last year, and recent weeks have brought changes of presidential rhetoric over the Falklands and Irish unity that further complicate the UK’s position. Carney met UK Prime Minister Andy Burnham in Liverpool during his trip to Brussels and Strasbourg, while Champagne attended a meeting of EU finance ministers in Dublin on Friday alongside UK Chancellor John Healey.

Earlier, after his election, Carney invited King Charles to open the Canadian Parliament in Ottawa — a move widely seen as a rebuff to Trump’s repeated suggestion that Commonwealth Canada could become part of the United States.