anadian Prime Minister Mark Carney is seeking closer ties with the European Union and is exploring whether Canada could become an "associate member" of the bloc, according to a Wall Street Journal report on Sunday.

The EU, which has historically maintained strict rules on membership, is open to creating a new form of associate membership for Canada, added the report, citing unnamed officials from both sides.

Canada's escalating trade dispute with the US has added urgency to Ottawa's efforts to strengthen economic and strategic ties with other partners.

Relations between Canada and Washington have deteriorated sharply since US President Donald Trump returned to the White House in early 2025, with trade and other disagreements leading to tariffs covering tens of billions of dollars in cross-border commerce.

Against this backdrop, Canada and the EU are discussing measures that could allow Canadian goods, services and workers involved in strategic sectors to move more freely across the bloc's borders.

The sectors under discussion include energy, artificial intelligence, defence and critical minerals, Wall Street Journal reported.

The two sides are also discussing cooperation on underwater cables, data centres, cloud storage and new satellite networks. They are further exploring infrastructure that could facilitate the shipment of Canadian energy to the EU, added the report.

Carney has also held regular discussions with several European leaders, particularly French President Emmanuel Macron, over the possibility of allowing Canadians to live and work in the EU without visas, the report said, citing two officials familiar with the matter.

Carney and Macron are due to meet later this month.

However, efforts to deepen ties between Canada and the EU could face obstacles, as opposition to a more limited trade agreement between the two sides has demonstrated.

The trade deal was signed more than a decade ago and provisionally took effect nine years ago, but several EU member states have yet to ratify it.