Australia backs Canada's EU alliance push as US trade war bites
Australia's trade minister said Canberra is "on the same page" as Canada's bid for closer EU ties, as both countries face US tariffs. Canada's PM Mark Carney seeks a "unique alliance" with Brussels, not membership. The EU is a key diversification target for Australian exports, with a free trade deal signed in March.
Bottom line — Canada and Australia are pivoting to Europe as US tariffs persist, with Canada seeking a unique EU alliance and Australia eyeing deeper trade ties.
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- Canada and the EU are discussing free movement for goods, services and workers in strategic sectors like energy, AI, defence and critical minerals, per the Wall Street Journal.
- Talks also cover joint infrastructure projects including underwater cables, data centres, cloud storage, satellite networks and energy transport facilities, the WSJ reported.
- Carney has discussed visa-free travel for Canadians with EU leaders, notably French President Emmanuel Macron, the WSJ said, citing unnamed officials.
- Farrell said he was open to all options with the EU except extra fibre-optic cables due to distances, per the Sydney Morning Herald.
- EU-Canada goods trade is small compared with Canada's US trade: 70% of Canadian exports went to the US in July versus 5% to the EU, per the article.
- Canada became the first non-EU country to join the EU's defence procurement program, and Carney will attend the State of the EU address this week, per SBS News.
- An April poll found 57% of Canadians backed EU membership, but analyst Ignacio Garcia Bercero of Bruegel called full membership "not a realistic prospect."