Canada and the European Union will sign a joint declaration this week that drops the contentious idea of associate EU membership, opting for 'ever closer association' instead, with officials planning to make the text public on Friday. The declaration comes ahead of a Montreal summit hosted by Canadian Prime Minister Mark Carney starting on Thursday.

Why associate membership was dropped

The term had divided the bloc. European Commission President Ursula von der Leyen suggested associate membership six weeks before the summit, and the suggestion became a divisive issue in the negotiations.

• •Germany led a group of EU countries arguing they could not sign up to a concept with no legal status and that had not been fleshed out, according to diplomats
• •There is no precedent or legal definition for an EU 'associate member'
• •A previous draft statement had included at least two references to Canada as an associate member, including that defining the term would take another year

What the declaration contains

Beyond the wording on the relationship, the statement sets out concrete joint initiatives agreed by the two sides.

• •A joint initiative to improve international connectivity between Europe, Canada and Asia through 'new subsea cable infrastructure'
• •A joint feasibility study on Canadian liquefied natural gas exports to Europe
• •Measures enabling young Canadians and Europeans to work across the Atlantic
• •A pledge of commitment to a rules-based international order, with leaders saying they 'deeply regret' the sanctions the US imposed on the Netherlands-based International Criminal Court

Carney's push to ease reliance on the US

Since President Donald Trump imposed tariffs on Canadian goods, Carney has looked to Europe as he works to lessen how much Canada depends economically and on security matters on the US. The numbers behind that dependence are stark: Canada ships nearly 70% of its exports to the US, while the EU accounts for about 9% of Canada's total trade.

Washington has reacted sharply to the associate membership idea in the past. Trump previously called the EU's proposal to make Canada an associate member 'laughable' and said that if he interpreted it as a 'hostile act', the US might stop trading with Europe 'on many things'.

Barry Appleton, an international trade lawyer and fellow at the Balsillie School of International Affairs in Waterloo, Ontario, said the multilateralism talk was like 'sticking a finger into President Trump's eye'. He added: 'This is a highly provocative statement from the EU and Canada,' noting the statement commits Canada to aligning its AI and digital rules with Europe's, which Washington considers a trade barrier. The White House, in response to a request for comment, said US and Canadian trade officials are talking.

What happens next

Officials said work to define the Canada-EU relationship would continue until another summit next year. Carney told reporters on Tuesday that the summit this week is the launch of further formal negotiations that will take another year. On the dropped label, he said: 'The good news is it doesn't matter about specific names or nomenclature. What matters is the difference it will make to the lives of Canadians.'

EU officials said at a briefing Tuesday that the summit was a 'historic milestone' and that all member states support the closest possible relationship with Canada. Not everyone was convinced. Julian Karaguesian, a former adviser at Canada's Finance Ministry, described the summit as 'a bit of a show', saying Canada's effort to be closer friends with the EU is very ill-defined. Carney's office declined to comment.