{"id":952692,"date":"2026-10-31T04:04:13","date_gmt":"2026-10-31T04:04:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/952692\/"},"modified":"2026-10-31T04:04:13","modified_gmt":"2026-10-31T04:04:13","slug":"ottawa-inspired-by-nafta-as-it-pursues-a-new-canada-eu-alliance-joly-says-2","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/952692\/","title":{"rendered":"Ottawa inspired by NAFTA as it pursues a new Canada-EU alliance, Joly says"},"content":{"rendered":"

MONTR\u00c9AL \u2014 Ottawa is drawing inspiration from the North American Free Trade Agreement as it works to develop a new alliance with the European Union, Industry Minister M\u00e9lanie Joly says.<\/p>\n

Joly told The Canadian Press that Canada\u2019s trade agreement with the United States and Mexico fostered industrial integration that has worked effectively in North America for decades.<\/p>\n

The minister said the accord, which has since been replaced by the CUSMA trade deal, could be a model for strengthening ties between Canada and the EU.<\/p>\n

\u201cNAFTA is an industrial partnership. It\u2019s more than CETA,\u201d said the minister, referring to the Comprehensive Economic and Trade Agreement with the European Union that took effect 10 years ago.<\/p>\n

She said CETA was largely \u201cabout being able to export without tariffs.\u201d Current discussions, she said, focus on developing deeper connections between Canadian and European industrial sectors like the ones NAFTA fostered for decades.<\/p>\n

\u201cWe\u2019re moving from a free-trade agreement to the idea of a common market,\u201d she said in an interview that took place between working sessions and hallway discussions at the Canada-EU summit in Montreal.<\/p>\n

Joly cited NAFTA\u2019s rules of origin provisions, which allow officials to determine which goods are entitled to preferential tariff treatment.<\/p>\n

\u201cThis ranges from the certification of our passengers and products at airports to the fact that we have the same certification standards for cars and electrical equipment,\u201d she said. \u201cIf it\u2019s certified in the United States, it\u2019s automatically certified in Canada.\u201d<\/p>\n

CETA \u201chas never had that,\u201d she said.<\/p>\n

Joly said there is an \u201cimmense\u201d opportunity for Canada to reduce its dependence on the United States by deepening its ties with Europe.<\/p>\n

\u201cLittle by little, the flow of trade \u2014 which used to account for 75 per cent of our exports to the United States and has now decreased to 67 per cent \u2026 (we) will see that trade flows will shift toward Europe,\u201d she said.<\/p>\n

Canada already has several agreements with the EU, some of which were initiated under former prime minister Justin Trudeau. These agreements cover areas such as artificial intelligence and research funding.<\/p>\n

In February 2026, Prime Minister Mark Carney\u2019s government formalized Canada\u2019s participation in the European program known as SAFE, which looks to accelerate defence procurement by EU member states.<\/p>\n

Carney also has been hinting for months at the possibility of a closer relationship with Europe that would go far beyond existing agreements.<\/p>\n

European Commission President Ursula von der Leyen has gone so far as to suggest Canada could become the first \u201cassociate member\u201d of the EU.<\/p>\n

The details of new relationship have yet to be defined and its benefits remain unclear.<\/p>\n

Some of those answers could come on Friday, at the conclusion of the two-day summit.<\/p>\n

Joly offered some clues. On Thursday, she visited the Montreal facilities of a French company, Nexans, which specializes in copper cables and wires for electrical systems.<\/p>\n

\u201cWhen the (U.S.) tariffs were imposed a few months ago, they lost 75 per cent of their business \u2026 It was going to kill the company,\u201d she said.<\/p>\n

Joly said company managed to turn things around by finding new markets.<\/p>\n

\u201cLittle by little, they reached 14 per cent of their output that they were able to ship to Europe, and the goal is to reach 20 per cent,\u201d she said.<\/p>\n

\u201cThey\u2019ve also gradually managed to expand their market in Canada, so they\u2019ve regained about 75 per cent of the 75 per cent they had lost.\u201d<\/p>\n

Closer ties with Europe could also reduce Canada\u2019s reliance on the United States for undersea cables, Joly said.<\/p>\n

The cables, which carry data between North America and Europe, are currently controlled by \u201cBig Tech,\u201d she said.<\/p>\n

\u201cWe need undersea cables that connect Europe to Canada and are owned by European and Canadian interests,\u201d she said. \u201cThat way, if we ever have a conflict, they can\u2019t prevent us from accessing that flow of information and data.\u201d<\/p>\n

Canada has been mired in a trade war triggered by U.S. President Donald Trump for more than a year and a half. Europeans have not been spared the U.S. president\u2019s attacks, although the situation is different for them because they don\u2019t share a land border.<\/p>\n

NAFTA was torn up by Trump during his first term. It was only after a long period of tariffs targeting Canada that Ottawa and Washington buried the hatchet by negotiating CUSMA.<\/p>\n

During his current term, Trump has argued that CUSMA no longer serves the United States well and that it needs to be revised. Canada, the United States and Mexico have been drawn into an annual review of the agreement, which has meant a less predictable trading environment.<\/p>\n

\t\tKeep it Factual<\/p>\n

Add CityNews Vancouver as a trusted source on Google to see more local stories from us.<\/p>\n

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