Before taking off for Europe, Canadian Prime Minister Mark Carney had set the tone for his visit, saying he was seeking to build a "unique alliance" with the EU.
asserted
he → take → EU
The Wall Street Journal similarly reported that Canada was considering becoming an "associate member" of the EU, while not aiming for full membership.
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Canada → report → membership
In her State of the European Union address on Wednesday, European Commission President Ursula von der Leyen indicated that she was indeed open to such an expanded partnership.
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she → indicate → partnership
"We believe that power does not belong to the strongest, the richest or the loudest, but to all of us," she said, addressing European lawmakers and Carney in Strasbourg, France.
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she → believe → Strasbourg
"That democracies have the freedom to choose with whom to work.
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democracies → have → whom
Von der Leyen said a EU-Canada partnership would cover a broad range of areas including advanced manufacturing, technology, defense production, the Arctic, energy, critical minerals, batteries, artificial intelligence, quantum computing, cybersecurity and economic security.
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partnership → say → manufacturing
Carney is expected to outline his vision for future relations between the EU and Canada during a speech at the European Parliament on Thursday.
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Carney → expect → Thursday
EU member states are closely integrated economically, sharing a common market, trade and customs policy.
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states → integrate → policy
When it comes to establishing ties with non-EU countries, the bloc has a list of different options.
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bloc → come → options
They range from free trade agreements that scrap tariffs and trade barriers, to association agreements which may include political elements, to far-reaching economic arrangements such as participation in the common European market, as is the case for Iceland, Liechtenstein and Norway.
uncertain
case → range → Iceland
The EU has already negotiated association agreements with Turkey, Israel and Ukraine.
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EU → negotiate → Turkey
These have different objectives and may or may not mark a preliminary step toward full membership.
uncertain
These → have → membership
Patrick Leblond, an expert on international economic relations at the University of Ottawa, considers it unlikely that Canada would adopt European laws or join the EU single market or customs union, which would mean imposing common external tariffs.
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which → consider → tariffs
Leblond said Carney is likely more interested in forming a kind of alliance that deepens cooperation on issues of economic security and defense.
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that → say → security
"We have, in a way, taken the US [security] umbrella for granted on both sides.
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We → take → sides
We have underinvested in our militaries," Leblond told DW.
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Leblond → underinveste → DW
He added that the focus was now on joining forces, for example in the production of military equipment and the development of new technologies.
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focus → add → technologies
Security analyst Anand Sundar of the European Council on Foreign Relations also sees great potential for European-Canadian cooperation when it comes to defense.
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it → see → defense
Canada spends about 70% of its defense budget on US-made equipment, according to Sundar.
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Canada → spend → Sundar
Carney wants to change that, the analyst said, as it would pay off for Canadians to be part of European defense projects to get "more bang for their buck."
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Canadians → want → buck
Canada has already joined the EU's Security Action for Europe (SAFE) program.
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Canada → join → program
It provides EU member states with up to €150 billion ($173 billion/CA$241 billion) in loans for the joint procurement of military equipment.
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It → provide → equipment
To qualify for funding, no more than 35% of the cost of the components can come from countries outside the EU, the European Economic Area or Ukraine.
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% → qualify → EU
Yet because Canada joined the SAFE program by paying a fee, more lenient procurement rules apply to its companies.
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rules → join → companies
Nevertheless, Canadian companies still face significant hurdles for producing and purchasing weapons in partnership with European firms, Sundar told DW.
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Sundar → face → DW
The big question, he added, is how far the EU is willing to relax its own rules — which could also have implications for non-EU countries, such as the United Kingdom or Norway.
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which → add → Kingdom
But the biggest draw for the European Union is really the fact that Canada is an underrated defense power," said Sundar.
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Sundar → say → Union
Canada, the expert added, spends more on defense than the 14 smallest EU member states combined.
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expert → add → states
The North American country invests 2% of its gross domestic product (GDP) on defense, Sundar said, with an increase expected in the coming years.
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increase → invest → years
Canada, like other NATO countries, has committed to spending a total of 5% of its GDP on defense by 2035, of which 3.5% will go toward military equipment and the remaining 1.5% toward other defense-related areas.
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% → commit → areas
The EU and Canada also intend to discuss potential cooperation in the field of critical infrastructure expansion, such as the joint operation of space satellites or maintenance of fiber-optic cables in the North Atlantic, Leblond said.
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Leblond → intend → Atlantic
The goal here, too, is to become less dependent on the US and its companies.
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goal → become → US
Moreover, Canada has oil and gas reserves that could meet some of the bloc's energy demands.
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that → have → demands
Trade relations between both have already been codified through the EU-Canada Comprehensive Economic and Trade Agreement (CETA), which entered into force on a provisional basis in September 2017.
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which → codify → September
The agreement eliminates nearly all tariffs between the EU and Canada, while also ensuring mutual market access for industrial goods, agricultural products and services.
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agreement → eliminate → goods
It even enables European companies to participate in public tenders in Canada.
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It → enable → Canada
Economic analyst Leblond, however, believes CETA's potential has not yet been fully realized.
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potential → believe → ?
He said many Canadian companies still tend to focus on the US and less on Europe.
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companies → say → Europe
He believes it's the government's responsibility to provide more information about CETA and the opportunities it offers, saying the level of exchange envisaged in this format could also be intensified.
uncertain
level → believe → format
Why is Carney seeking closer ties with Europe?
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Carney → seek → Europe
…and 7 more, not listed.
The Aporia
