As Canada, which has recently fallen out with the United States, continues to draw closer to the European Union (EU), it has now moved to explore ways to join a €90 billion (about 140 trillion won) loan package for Ukraine. If Canada takes part in the Ukraine loan support, it would become the second non-EU country to do so after the United Kingdom.
On the 13th, the Financial Times (FT), citing sources, reported that Canada is holding talks with the EU to agree on the size of Canada's contribution to the Ukraine loan support ahead of the EU summit to be held in Montreal next month.
Prime Minister Mark Carney of Canada is scheduled to meet European Commission President Ursula von der Leyen on the 16th. He will then also hold talks with U.K. Prime Minister Andy Burnham.
Canada's participation in the Ukraine loan support led by the EU is seen as a move to show solidarity with the bloc. Currently, the United Kingdom is the only non-EU country participating in the Ukraine loan support. Canada has already allocated military aid to Ukraine since the war broke out, and on the 10th it also agreed to a support package to secure air-defense interceptor missiles.
According to the FT, Canada hopes to cooperate with the EU in areas beyond support for Ukraine to respond to trade frictions with the United States. The two sides have already agreed to pursue cooperation in six areas: trade, security and regulation, critical minerals, energy and clean technology, visa liberalization, and financial systems.
Mark Camilleri, head of the Canada-EU Trade and Investment Association, said, "We are fleshing out what 'trusted partner' means in the context of economic security," and argued, "If Canada and the EU get this right, it will be a model that can also apply to other allies such as the United Kingdom, Norway, Japan, and Australia."
Carney is said to have proposed a "quasi-member state" model to strengthen ties with the EU. However, within the EU, there is caution about introducing a new, separate status in light of existing relationships with other European countries such as the United Kingdom and Norway that already cooperate without joining the EU.
Some also argue that it would be difficult to offer a relationship on par with Norway and Switzerland, which contribute to the EU budget and have access to the single market. In addition, of the 27 EU member states, about 10 have yet to ratify the trade agreement with Canada, which has been provisionally in effect since 2017, citing concerns about harm to farmers.
The FT noted that the United States overwhelmingly dominates among Canada's trading partners and that there are limits to deepening ties with the EU at present. An EU official said, "We need to be realistic and pragmatic while properly managing Canada's expectations."