Canadian Prime Minister: US-Canada trade agreement is still possible, but Ottawa will not give up its right to deepen cooperation with the EU

Canadian Prime Minister Mark Carney stated that a mutually beneficial trade agreement with the United States is still possible, but Canada will not trade its sovereignty for an agreement, especially not relinquishing the right to independently sign trade accords with the European Union and other economies.

On September 23, according to The Wall Street Journal, Carney revealed in an interview with the paper during the United Nations General Assembly that since trade negotiations between the two countries broke down in August this year, some progress has been made, but it is not sufficient to reach an agreement.

Previously, Trump imposed high tariffs on Canada, and Canada responded with countermeasures, pushing bilateral trade tensions to new heights.

At the same time, Carney stated that Canada is actively working to establish a deeper and more formal partnership with the European Union, emphasizing that broadening cooperation with allies and diversifying dependencies is a necessary choice to defend national sovereignty under the current geopolitical landscape.

This move means that Canada will accelerate efforts to diversify its foreign relations, and the strategic priority of its relationship with the United States may be adjusted accordingly.

Carney noted that when talks collapsed in August, multiple “red line” issues stood between both sides. Some have since been removed from the table, but core differences remain unresolved. He said:

Late in the negotiations, a series of red line issues emerged for us that we did not, and will not, cross. Some of these have now been taken off the agenda, but one of our core principles is that we will not do so at the expense of our sovereignty. The ability to sign trade agreements with other jurisdictions is critically important to us.

With negotiations with the United States stalled, Carney is focusing on deepening cooperation with Europe. He stated that Canada will not seek to join the European Union, but cooperation with the EU in key minerals, energy supplies, and low-Earth orbit satellite capabilities will genuinely strengthen the resilience of both sides’ sovereignty.

Carney also proposed that the scope of cooperation could extend to scientific research projects, seamless digital payment systems, and even joining the European “Erasmus+” student exchange program.

At present, Canada is participating alongside Ukraine in the EU’s SAFE initiative, which aims to fund military industry and technological development. Canada is also working with the Baltic and Nordic countries to safeguard NATO’s northern flank through the Arctic. He said:

All countries now realize that interconnectivity can be weaponized: it can be trade, it can be supply chains, or any kind of financial payment system. To maintain sovereignty, I have to diversify. Therefore, I need partners.

When asked by others about his relationship with Trump, Carney was cautious in his words. He said:

We focus on areas where mutually beneficial outcomes are possible, and security cooperation is often a priority. I pay attention to everything the President says. But not everything will necessarily stand the test of time.

Against the backdrop of Trump repeatedly labeling Canada as the “51st state,” Carney’s remarks reflect Ottawa’s pragmatic stance in handling U.S. relations: maintaining cooperation in security while adhering to core principles on trade and sovereignty.

Carney characterizes the current situation as a test of the maturity of national governance. He said:

In an interdependent world, truly understanding the essence of sovereignty requires mature judgment. You can choose to shut yourself off and retain your sovereignty, but that means poverty; or you can choose to deeply integrate globally while retaining your sovereignty, but only if you act with purpose. This is the most important lesson of the past few years.