Canada Plans Stronger Trade Ties with EU Amid U.S. Tariff Threats

In light of potential U.S. tariff threats, Canada is actively seeking to strengthen its economic ties with the European Union, as Trade Minister Mary Ng emphasized the need to uphold global trading rules. Since the establishment of a free trade agreement in 2017, bilateral trade between Canada and the EU has surged by 65%. Ng highlighted critical minerals and support for small businesses as key areas for further collaboration, aiming to boost non-U.S. exports by 50% by 2025. Canada's recent trade agreements with Indonesia and Ecuador, alongside its engagement in the Indo-Pacific, reflect this diversification strategy. Despite a strong trading relationship, Canada still heavily relies on the U.S. market, prompting discussions on maximizing the benefits of the Comprehensive Economic and Trade Agreement (CETA). Analysts suggest that better utilization of this trade pact could significantly reduce Canada's dependence on U.S. trade.