EU membership not Canada’s best option

Almost one-half of Canadians favour the idea of Canada joining the European Union, according to a poll of almost 2,000 Canadians conducted last month by Abacus Data. It is an idea worth considering, given the fraught nature of our current relationship with the United States, but not to the exclusion of other viable options.

Proponents of the EU idea argue that joining the other 27 EU member states would give Canada unfettered access to one of the world’s largest single markets. It would allow for the free movement of our goods, services, capital and people across the European continent without tariffs or other barriers. That, in turn would bolster economic growth, attract foreign investment and create jobs.

They also point out that the EU is the world’s largest trade alliance, which gives it immense leverage to negotiate better access to world markets, as well as lower prices and tariffs. Canada, they say, would benefit from that strength — something that is sorely missing in its trading relationship with the U.S.

There are those who argue, however, that there would be a serious downside to Canada joining the EU, including the loss of national sovereignty, loss of control over immigration, a range of economic restrictions, mandatory adoption of EU regulations and other policies that may be contrary to Canada’s specific interests.

Most notably, they claim that any attempt by Canada to join the EU would signal the end of the Canada-U.S.-Mexico free trade agreement.

Finally, they also point out that Canada is not even eligible for EU membership under the current terms of the Treaty on European Union, which makes clear that only European states can be EU members. Any move to admit Canada to the group would require the consent of all 27 members, which would take years to accomplish and is far from assured.

All of those factors likely explain why Prime Minister Mark Carney said last summer that Canada was not interested in pursuing membership in the EU. He told reporters at the time that Canada is “looking for a closer partnership” with the European Union, but that membership in the EU is “not the pathway we’re on.” Rather, he proposed that “we co-operate much more clearly and broadly to our mutual benefit. Not as a member, but along that continuum.”

That continuum includes pushing for full ratification of the Canada-EU trade agreement by EU member nations, as well as working more closely with the EU on a range of issues that include defence, trade, artificial intelligence and climate change. It also includes Canada’s recently announced membership in the EU’s Security Action for Europe (SAFE) program, which offers loans to member states to invest in defence capabilities and will enable Canadian companies to bid on EU defence projects.

If EU membership is not in the cards, there are other options available that may be more effective, and less risky, in making Canada less vulnerable to the erratic and often punitive economic whims of the Trump administration.

That includes Carney’s ongoing efforts to build improved trade relationships with economic powerhouses such as China and India, as well as the formation of new “strategic partnerships” with other “middle power” nations such as the United Kingdom, Japan, South Korea, Australia, New Zealand and certain key EU members.

If that work bears fruit, such a group would have enormous collective economic influence across the globe.

Those efforts are in addition to steps being taken to enable Canada to take greater economic advantage of its membership in both the 21-member Asia-Pacific Economic Cooperation organization (APEC) and the 11-nation Trans-Pacific Partnership, the latter of which includes Canada, Singapore, Mexico, Vietnam and Peru but not the U.S.

Viewed from that perspective, it appears that Canada’s interests are best served by continuing to strengthen our economic bonds with EU nations, but not to the exclusion of also building new and better trade ties with other nations.

Having experienced the economic danger that flows from focusing the bulk of our trade activity on one partner, Canada is wise to reduce that risk by building relationships with a range of partners around the world. The new approach may take time, but it is the safer strategy.