Mark Carney has accused Donald Trump of economic “coercion” after the president threatened to impose tariffs on the EU following an announcement Canada could become the bloc’s first associate member.
In an address at the European Parliament on Thursday, the Canadian prime minister told members that economic tools were being used for “coercion” and to “exert pressure”. He went on to warn about the “erosion of democratic norms” and the “weaponisation of trade”.
”Economic integration is now being weaponised, tariffs being used to exert pressure,” he said in French, although he did not mention Trump explicitly. “Financial mechanisms have been used for coercion. Supply chains constitute weak points to be exploited.”
Carney insisted that Canada did not seek “dominance” or power, but that it would work in collaboration with Europe for the better of both sides. He reiterated that the country is not “seeking to become a full member of the European Union” but that the partnership would be based on a “different framework”.
While smiling, the prime minister added that the partnership did not seek to be a “rival power with better manners” in another apparent nod to Trump’s spats with European countries, prompting laughter from Parliament members.
Trump told reporters on Wednesday that the pact could be perceived as a “hostile act” depending on the contents of any agreement.
“If they do that, if I think it's at all a hostile act, I will put very serious tariffs or stop trading with Europe on many things,” Trump told reporters en route to an event in North Carolina, calling the proposal "laughable".
Trump has previously threatened tariffs on both Europe and Ottawa and bragged that he could make Canada the “51st state” of the USA. In July this year, he imposed 50 per cent tariffs on everything from alcohol to hockey sticks accusing the country of “continued discrimination”.
European Commission President Ursula von der Leyen highlighted the benefits of closer ties with Canada in her annual State of the European Union address to the European Parliament in Strasbourg Wednesday where she announced that the country could become the EU’s first associate member.
However, four diplomats told Politico that EU capitals were left blindsided by the announcement and that it had caused considerable confusion.
While there have been little details as to what “associate” membership would entail, Carney told the Parliament on Thursday that some of the collaboration would include freer movement between the EU and Canada for citizens to work and study, Canada contributing to European LNG production for instance through the use of its ports, and the creation of joint frameworks regarding the use of Artificial Intelligence.
“The objective is not self-sufficiency, its collective resilience”, he said, adding that Europe and Canada are “stronger together.” His speech received a standing ovation from European Parliament members.
He spent some time speaking about the history between Canada and the EU and pointed to their shared values, saying that they “do not pursue zero-sum deals” and are “not fair weather allies”.
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