Carney says Canada won’t trade away EU ties for U.S. deal

UNITED NATIONS — Canadian Prime Minister Mark Carney said this week he sees potential for a trade agreement with the United States but drew a firm line: Canada will not surrender its ability to forge closer ties with the European Union and other partners around the world.

Speaking on the sidelines of the UN General Assembly in New York, Carney told The Wall Street Journal News Corp ↘ 3.58% that he remains optimistic about a deal with Washington, though he stressed that Canada's sovereignty over its broader trade relationships is non-negotiable. Negotiations between Ottawa and Washington collapsed in August after President Trump imposed steep tariffs and Canada responded with counter-tariffs. Carney acknowledged some progress since the breakdown but said it has not been enough to close a deal.wsj

A Wider Diplomatic Push

The trade standoff with Washington has accelerated Canada's efforts to diversify its economic partnerships. Carney, a former central bank chief with a doctorate in economics, aims to double Canada's non-U.S. trade within a decade. Foreign Minister Anita Anand described the General Assembly gathering as a chance to advance Canada's "middle power strategy," telling The Washington Post that the approach is "bearing fruit" nine months after Carney urged like-minded countries to act together.washingtonpost+1

Carney co-hosted an event with European Commission President Ursula von der Leyen during the assembly, underscoring Canada's pursuit of deeper EU ties. The prime minister has embraced a proposal for associate membership in the EU, a step that would deepen integration with the bloc on trade and regulatory matters.ctvnews+1

Potash, India, and the Road Ahead

In his own address to the General Assembly on Tuesday, Trump said the United States would continue purchasing Canadian potash, a key fertilizer ingredient of which Canada is a leading global producer. Carney responded by calling potash "an incredible strength of our economy" and describing Canada as a "reliable, cost-competitive supplier".ctvnews+3

Carney also confirmed that Indian Prime Minister Narendra Modi will visit Canada in December, as the two countries work to finalize a trade deal by year's end. The planned visit marks a notable thaw in relations that had been strained over diplomatic disputes, according to CBC News. Taken together, the moves reflect a Canadian government intent on building leverage beyond its relationship with its largest trading partner — even as it keeps the door open for a deal with Washington.cbc