CNN: European Commission President Ursula von der Leyen proposed Wednesday that Canada become the bloc’s first “associate member,” provoking a fresh tariff threat from US President Donald Trump.
The move is aimed at shoring up their economies in the face of increasing trade tensions with the United States. But Trump said Wednesday the US could put “heavy tariffs” on the European Union if he considers any new agreement with Canada to be a “hostile act.”
“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,” he told reporters…
E.U.-Canada Ambitions Face Reality Check as Trump Bristles
The label the European Union wants to confer on Canada, “associate member,” is not an existing type of partnership — meaning it is unclear what actions Canada would have to take to earn it, or for it to be given.
“It has no legal basis,” said Mujtaba Rahman, managing director for Europe at the Eurasia Group. “It’s more symbolism and signal,” he added.
Ms. von der Leyen was taking a risk using the term, which had been floating for weeks ahead of her speech, and drew consternation from several member states, according to European officials…
Canada can learn some hard lessons from Brexit as it pivots to the EU
Brexit scholar Anand Menon says closer ties with Europe cannot replace Canada’s economic relationship with the U.S.
…Q: Brexit was sold partly as a way for Britain to expand trade beyond Europe. What did Britain get wrong about diversification that Canada should avoid as it looks beyond the United States?
Anand Menon: Bear in mind, the vast majority of Canada’s trade is still with the United States and will be, because that’s the key lesson, isn’t it? That geography is the major determinant of trade patterns, and you trade a lot more with countries that are close to you. I think that the untruth sold by Brexiters about trade was the argument that Asia’s growing a lot faster than Europe, so if we become free of the European Union, we can trade more with the part of the world that’s growing very fast.
…So you can do trade deals. One of the reasons why the European Union is willing to make all these very nice positive noises towards Canada, without being too cynical about it, is because Canada is bloody miles away. You’re not going to get livestock wandering over the border between Canada and the European Union. So, in a sense, it’s far easier to do this sort of thing with a country that’s miles away because you do far less trade with them, and the risks are far less…