The European Union is considering a new form of partnership with Canada that could allow the country to become its first “associate member”, European Commission President Ursula von der Leyen said during her annual State of the European Union address in Strasbourg.

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The proposed status does not currently exist under the EU treaties. Von der Leyen said Brussels wants to build on the existing Comprehensive Economic and Trade Agreement (Ceta) and develop a broader strategic partnership with Canada.

The expanded relationship could cover trade, technology, defence, Arctic cooperation, energy and economic security. The proposal comes as Canada faces growing trade tensions with the United States, including higher US tariffs and repeated comments from President Donald Trump about Canada becoming the 51st US state.

Canadian Prime Minister Mark Carney has advocated a closer and more diversified relationship with Europe, describing the need for a “unique alliance” with the EU to reduce Canada's dependence on the US market.

Carney received a standing ovation from European lawmakers and was scheduled to address the European Parliament as discussions over deeper Canada-EU cooperation gathered momentum.

Any associate membership arrangement would require further negotiations and clarification because such a status is not currently defined within the EU's legal framework.