Yesterday’s trade headlines were dominated by Ursula von der Leyen’s “opening the door” for Canada to be granted “associate” membership of the EU.
Questions have been raised about what such a move means for the UK’s relationship with the bloc, while US President Donald Trump has described it as a potentially “hostile act” and threatened “very serious tariffs” in response.
What the EU and Canada have said
European Commission (EC) president von der Leyen made her comments during an address to the European Parliament yesterday, which was attended by Canadian prime minister Mark Carney.
Carney, who is touring Europe this week and watched an Everton football game with British counterpart and fellow Toffees fan Andy Burnham last night, said prior to the trip that his country was seeking a “unique alliance” with the EU.
Von der Leyen said the bloc and Canada “see the world with the same eyes” but did not give further details on what Canadian associate membership would mean in practice. She did, according to the BBC, mention “manufacturing, technology, AI, defence, energy, critical minerals and economic security as key areas for cooperation”.
"Partnerships are a strategic choice for Europe,” she said. “But they also respond to the fracture in the international rules-based system".
The prospect of closer EU-Canada ties comes amid a worsening of relations for both with the US under Donald Trump’s leadership, as both have seen tariffs for exports to the US rise under his presidency.
Von der Leyen’s comments yesterday, however, were not run past member state governments in advance, diplomats have told Politico.
What Canada’s associate EU membership could mean for the UK
Under EU treaties, there is a clear distinction between membership and partnerships, with the bloc having close partnerships with various countries, such as members of the European Free Trade Association and the UK. Only the 27 EU countries, as we know them, are viewed as members.
A new model of membership would “require a treaty change” said René Repasi, a German Socialist and Democrat MEP, to Politico.
Another MEP, Nicola Procaccini, told the same publication that, while it’s “not entirely clear what this membership would actually entail”, the UK ought to be the first beneficiary of such a new arrangement.
Chartered Institute of Export & International Trade UK public affairs lead Grace Thompson said that while there are doubts about whether the UK could benefit from this membership type, the development could still be fruitful for UK-EU relations.
“The ears of the UK trading community are sure to have pricked up at talk of Canada’s potential ‘associate membership’ of the EU. After all, this is one of the first signs of practical action emanating from Carney’s continued ‘middle powers’ rhetoric.
“Although officials on both the UK and EU sides are sceptical that similar status could ever be granted to the UK, given our technical eligibility to re-accede, there are certainly lessons to be learned here for UK negotiators. Flexibility can be possible, in the wake of unprecedented times.”
‘Made in EU’ concerns
Yet, the UK-EU reset is under strain, with Brussels’ proposed ‘Made in Europe’ public procurement proposals – designed to defend the bloc from rising Chinese industrial competition – a serious cause of concern in London.
Such is the level of angst around the plans, which could see UK businesses frozen out of various European supply chains if British access to the scheme isn’t negotiated, there are now reports that the upcoming UK-EU reset summit could be delayed again.
The Guardian notes that the UK’s European relations minister, Hamish Falconer, told EU trade commissioner Maroš Šefčovič that ‘Made in Europe’ was now the UK’s priority in negotiations, due to concerns over its impact on British automotive and defence sectors.
Talks have been ongoing for the sanitary and phytosanitary (SPS), youth mobility and energy trading deals that were pledged at the inaugural UK-EU Leaders’ Summit last year, but there are fears that progress on these agreements is stalling in light of concerns about ‘Made in Europe’, as well as a perception that Andy Burnham is prioritising domestic policy issues.
A date for this year’s summit, which had originally been slated for July but was postponed due to the change of UK leadership in the summer, has yet to be confirmed. Early November had been mooted as a possible timing, but this is now at risk due to the ‘Made in Europe’ concerns.
What Trump said about von der Leyen’s offer to Canada
US President Donald Trump has also threatened to impose “very serious tariffs or stop trading with Europe on many things” if Brussels went ahead with granting Canada associate membership of the EU, the FT reports.
He even said that it could be regarded as a “hostile act” and called it “laughable”.
"If it's a good intention, that's fine. If it's a bad intention, we'll put very heavy tariffs on Europe, which is a possibility."
Trump has repeatedly called on Canada to become a “51st state” of the US amid escalating tensions between the two North American neighbours.
Carney recently said that Canada will look to pivot trade away from the US, despite this coming “at a cost”. The two countries have imposed tariffs as high as 50% on each other’s exports.
EU Customs Reform update
Elsewhere in trade, the European Parliament voted to approve new rules that will see handling fees introduced for e-commerce goods entering the bloc from third-party countries, the establishment of a new EU-wide customs Data Hub and a new customs authority set up in Lille.
The measures form part of the bloc’s wider efforts to reform its customs regime and to counter the threat of cheap imports from countries like China undermining its own businesses.
EU member states will begin collecting the handling fee for low value imports from 1 November 2026, a press release from the European Parliament confirmed.
We will be providing further exclusive analysis for members about these reforms and their practical implications for UK traders in Global Trade Today next week.
Also in the trade news today
· The Bank of England is expected to hold interest rates later today – read tomorrow’s ‘The Week in Trade’ digest for further details
· UN secretary general António Guterres raised concerns that AI development is “racing ahead of our understanding of the risks” yesterday
· The EU has asked China to voluntarily limit hybrid car exports to prevent the risk of a trade war, the FT reports
Yesterday in trade
· Carney met Burnham yesterday to discuss trade, defence and technology ties
· Houthi rebels seized two strategically significant islands in the Red Sea
· UK inflation rose due to the impact of ongoing conflicts in the Middle East on energy markets
You can read yesterday’s trade news here.
