Canada seeks closer EU trade ties amid US tariff concerns

Canada is all set to strengthen its economic relationship with the European Union and reinforce global trade rules amid the looming threat of US tariffs, Trade Minister Mary Ng said in an interview with Reuters on Saturday.

Since the implementation of a free trade agreement in 2017, Canada and the EU have seen a 65% increase in bilateral trade, and in 2021, they established a partnership focused on raw materials.

Ng’s remarks followed a lunch meeting with EU Trade Chief Maros Sefcovic on Saturday, which came after her discussions with World Trade Organization Director General Ngozi Okonjo-Iweala in Geneva on Friday.

”Trade agreements are one thing, and we have seen really great numbers, but what more can we be doing to help Canadian businesses enter into any of the 27 member states…and what more can we do to the same in Canada” Ng said.

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She said critical minerals and smaller businesses would be among the focus areas with the EU. The EU, in particular, is keen to forge partnerships to secure metals that are key for the energy transition – cobalt, lithium and nickel – to reduce its dependence on China.

Canada is also pushing to diversify its exports and set itself a target in 2018 of increasing non-U.S. exports by 50% by 2025. Ng said the country was on track to meet or exceed the target.

Canada struck trade deals with Indonesia in December and Ecuador last week and is pushing hard in the Indo-Pacific region. The minister is leading a delegation including more than 200 businesses to Australia, Singapore and Brunei next week.

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”We are at the table with the countries in Southeast Asia, so the Association of Southeast Asian Nations. I took a very large delegation of Canadian businesses to the Philippines in December, to Indonesia, to markets like Vietnam, Malaysia, Japan, Korea,” Ng added.

Ottawa threatened retaliatory duties and legal action against the United States after President Donald Trump announced tariffs on Canada and Mexico a week ago and before he paused their imposition for 30 days. Ng said Canada could challenge Washington at the WTO if tariffs were imposed.

”We would consider all of the options are available to Canada because Canada is country that believes in a rules-based trading system,” Ng said.

On Friday, Canadian leaders convened to develop a strategy for redirecting exports from the US to other markets amid tariff threats from US President Donald Trump.

Trump on Monday said he would delay the imposition of tariffs on Canadian exports by 30 days in return for concessions on border and crime enforcement, in particular cracking down on fentanyl smuggling.

Trump has repeatedly suggested Canada would be better off if it agreed to become the 51st U.S. state.

Before Trump lifted his tariff threat, Canadians canceled trips south of the border, boycotted U.S. alcohol and other products and even booed American teams at sporting events.

Trudeau, who made his comments in front of a huge Maple Leaf flag, said it was “quite frankly, inspiring” that people were moving to buy Canadian products and vacation at home.

According to data released on Wednesday by national pollster Angus Reid, 91% of Canadians want their country to reduce its reliance on the United States in the future, favoring this approach over repairing the US-Canada relationship, though more than half still expressed a desire to attempt reconciliation. The survey also highlighted a significant rise in national pride, with 90% of Canadians closely following the issue, reflecting engagement levels comparable to those seen at the start of the Covid-19 pandemic.

With inputs from agencies