Canada wants stronger trade ties with the European Union due to possible Trump tariffs

(Patria) - Canada wants to deepen economic ties with the European Union and support global trade rules in the face of threats of US tariffs, Trade Minister Mary Ng said on Saturday.

The EU and Canada have benefited from a free trade agreement since 2017, which increased bilateral trade by 65 percent, and established a raw materials partnership in 2021.

Ng met with EU Trade Chief Maroš Šefčovič on Saturday over lunch, following a meeting with Ngozi Okonjo-Iweala, Director-General of the World Trade Organization in Geneva on Friday, Reuters reports.

“Trade agreements are one thing and we have seen really big numbers, but what else can we do to help Canadian businesses enter any of the 27 member states...and what can we do in Canada as well,” Ng said.

She said critical minerals and small businesses will be among the areas of focus with the European Union. Brussels, in particular, wants to establish partnerships to secure metals that are key to the energy transition, such as cobalt, lithium, and nickel, to reduce its dependence on China.

Canada is committed to diversifying its exports and set a goal in 2018 to increase exports outside the US by 50% by 2025. Ng said the country is on track to meet or exceed the goal.

Canada has concluded trade agreements with Indonesia in December and Ecuador last week and is working strongly in the Indo-Pacific region. The minister is leading a delegation that includes more than 200 businesses on a visit next week to Australia, Singapore, and Brunei.

“We are at the table with Southeast Asian countries, so the Association of Southeast Asian Nations. I took a very large delegation of Canadian businesses to the Philippines in December, to Indonesia, to markets like Vietnam, Malaysia, Japan, Korea,” Ng added.

Ottawa threatened retaliation and legal action against the United States after President Donald Trump announced tariffs on Canada and Mexico seven days ago, and before pausing their introduction for 30 days.

Ng said Canada could challenge Washington's decision at the World Trade Organization if they introduce tariffs. “We would consider all options available to Canada because Canada is a country that believes in a rules-based trading system,” she said.