Ottawa - Agencies

Canadian Trade Minister Mary Ng confirmed on Saturday, February 8, 2025, that her country is working to strengthen its economic ties with the European Union, while maintaining the stability of global trade rules, amid Washington's threats to impose new tariffs, according to a report by Reuters.

Growth in Trade Between Canada and Europe

Since the implementation of the Canada-EU free trade agreement in 2017, the volume of trade between the two parties has increased by 65%. They also launched a partnership to develop the raw materials sector in 2021, to enhance economic cooperation and expand mutual investments.

Focus on Supporting Companies and Strategic Minerals

During her meeting with EU Trade Commissioner Maros Sefcovic in Brussels, the Canadian minister discussed ways to enhance Canadian companies' access to EU markets, and emphasized that strategic minerals and small businesses will be among the priorities in cooperation with Europe.

She explained, saying:

“Trade agreements are a significant step, and we have already seen positive results, but the more important question is how can we help Canadian companies enter European markets easily? What are the necessary measures within Canada to enhance this partnership?”

For its part, the European Union is seeking to diversify its sources of important minerals such as cobalt, lithium, and nickel, which are essential in the transition to clean energy, in an effort to reduce its dependence on China.

Diversifying Exports Away from the U.S. Market

As part of its strategy to reduce reliance on the U.S. market, Canada set a goal in 2018 to increase its exports to non-U.S. countries by 50% by 2025, making strengthening economic partnerships with Europe and Asia a major priority.

Trade Tension with Washington

This move comes at a time when trade relations between Canada and the United States are experiencing rising tensions, after U.S. President Donald Trump announced tariffs on Canadian and Mexican exports.

In response, Ottawa threatened to impose counter-tariffs and take legal action, prompting Washington to suspend the enforcement of the decision for 30 days, in a step that gives both sides an opportunity for further negotiations.

The Future of Canadian Trade Amid International Challenges

As trade threats from Washington continue, Canada appears to be actively seeking to diversify its economic partners and strengthen its trade relations with the European Union and global markets to ensure sustainable economic growth and reduce reliance on the United States as a primary trade source.