In an address to the European Parliament on September 17, 2026, Canadian Prime Minister Mark Carney called for significantly closer cooperation between Canada and the European Union. A day earlier, European Commission President Ursula von der Leyen had proposed opening the door for Canada to become the EU’s first “associate member.” Carney explicitly welcomed the proposal. What such an association would mean in legal and institutional terms has yet to be defined.
From CETA to an “Alliance for the Future”
Canada and the EU already have a strong framework for economic relations under the Comprehensive Economic and Trade Agreement (CETA). In his address, Carney described CETA as one of the world’s most successful trade agreements. According to the European Commission, trade in goods between Canada and the EU has increased by 75 per cent in less than a decade.
The stated ambition now goes further. Von der Leyen has proposed an “Alliance for the Future”, describing a common space for prosperity and economic security. Areas identified for closer cooperation include technology and artificial intelligence, energy, critical minerals, defence and economic security.
Carney identified additional areas for potential cooperation, including AI and computing capacity, energy security, space and payment systems. He also called for more frictionless digital trade in non-agricultural goods and a broad range of services.
For businesses operating between Canada and Germany, these discussions are relevant to cross-border trade, investment and commercial activities. Any specific legal or regulatory changes, however, will depend on the agreements ultimately reached between Canada and the EU.
Greater Mobility Between Canada and Europe
One of the most notable parts of Carney’s address concerned mobility. He called for deeper people-to-people ties and for young people to have greater opportunities to live, work and study on either side of the Atlantic.
Carney specifically proposed Canadian participation in Erasmus+, as well as participation in the next generation of Horizon, the EU’s research and innovation program.
Energy, Technology and Financial Services
Carney also identified energy, technology and financial services as areas for closer cooperation. He referred to Canada’s potential contribution to European energy security through LNG and hydrogen, while Canada could benefit from European clean-energy technologies. In artificial intelligence, he raised the prospect of common safety protocols and standards.
Carney also proposed exploring an integrated market for financial services between Canada and Europe. He said such a market could increase choice and reduce costs for citizens while improving access to capital for businesses, with financial stability maintained.
Closer Ties, Different Legal Systems
Closer economic cooperation does not change the fact that cross-border matters between Canada and Germany involve distinct legal systems.
For businesses, this can be relevant to corporate structures and subsidiaries, contracts, investments, real estate transactions and cross-border disputes. German businesses operating in Canada may encounter both federal and provincial law, while Canadian businesses operating in Germany are subject to German law and, where applicable, EU law.
For individuals, the interaction between the two legal systems can arise in matters involving real estate, estates with assets or beneficiaries in both countries, and immigration.
What Comes Next?
The relationship outlined by Carney and von der Leyen is still taking shape. In particular, the legal and institutional meaning of a possible Canadian “associate membership” has yet to be defined.
Both sides have, however, made clear their intention to move beyond CETA, with discussions covering critical minerals, defence, artificial intelligence and computing capacity, energy security, space, financial services and payment systems, as well as greater mobility and stronger ties between Canada and Europe.
At this stage, these discussions do not in themselves create new rights or alter the existing legal framework for trade, investment, mobility, immigration or other cross-border activities. Their practical and legal implications will depend on the agreements and measures ultimately adopted.
For our clients whose businesses, investments, assets or personal interests span Canada and Germany, the legal and regulatory developments resulting from this evolving relationship will be particularly important to follow.
