June 16, 2025

Canada's Strategic Dance: Balancing Ties with the EU and US

Canada's Strategic Dance: Balancing Ties with the EU and US
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Canada's Strategic Dance: Balancing Ties with the EU and US

Canada’s U.S. dependency is risky. In this episode, we examine why the EU may offer a more intelligent, stable path for trade, security, and leadership.

Join host Abbey Inglewood in the latest episode of "Bigger Table," as we explore Canada's evolving international relationships and why leveraging partnerships, rather than relying on a single ally, is crucial for the nation’s future. Titled "What if I told you Canada's biggest ally might also be its biggest liability," the episode delves into Canada's deep-seated ties with the United States, assessing how political fluctuations and trade tensions south of the border threaten Canada's economic stability.

Abbey navigates the intricate dynamics of Canada’s partnership with the EU. Discover how agreements like CETA solidify economic ties and how shared values in democracy, human rights, and climate leadership lay the groundwork for deeper collaboration. The discussion unveils the potential for innovation in clean energy and digital privacy, emphasizing how Canadian firms stand to benefit from EU's stable governance.

However, the episode doesn't shy away from challenges; listeners will learn about the logistical hurdles and regulatory complexities within the EU that pose obstacles for Canadian businesses. The conversation also touches on the agricultural sector’s concerns and the political impracticalities of full EU membership.

In a world of shifting alliances, the message is clear: Canada doesn't have to choose between the U.S. and the EU. Instead, this episode champions a strategy of multilateralism and strategic partnerships, urging for a bigger table where more voices are heard, and fewer walls are built. Tune in and discover how Canada can lead with resilience and pragmatism in an unpredictable global landscape.

00:10 - Introduction to Canada's International Partnerships

01:48 - Risks of Over-Dependence on the U.S.

03:39 - Benefits of Strengthening Ties with the EU

05:19 - Challenges in EU-Canada Relations

06:16 - Finding a Balanced Approach

07:08 - Conclusion: Building a Bigger Table

WEBVTT

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What if I told you Canada's biggest ally might also be its biggest liability,

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and that our most brilliant move isn't loyalty, it's leverage?

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You're listening to Bigger Table, where more chairs, fewer walls,

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and greater progress aren't just a slogan, they're the mission. Let's get into it.

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Welcome to today's episode, where we dive into the future of Canada's international

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partnerships. We often think of Canada's closest ally as the United States,

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but what if relying on one neighbor so heavily is putting us at risk?

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Stay with us as we explore why deepening ties with the European Union might

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be the smartest move for Canada, not instead of the U.S., but alongside it.

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I'm Abbey Inglewood, your host, and today we're unpacking a topic that's crucial

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for Canada's economic resilience, security, and political independence.

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We'll discuss the risks of over-dependence on the U.S., the promising benefits

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of closer ties with the EU, and why a balanced approach is Canada's safest bet for moving forward.

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Let's start by setting the scene. For much of its history, Canada and the United

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States have been inseparable partners.

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We share the longest undefended border in the world, our economies are deeply

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integrated, and we've stood shoulder to shoulder in global conflicts.

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But reliance on the U.S. isn't without its flaws.

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Over recent years, political instability south of the border,

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changes in trade policy, and shifting defense priorities have shown that depending

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so much on one country leaves Canada vulnerable.

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Think about it this way. When 75% of Canadian exports flow into the U.S.,

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any political upheaval or trade tension there immediately puts our economy at risk.

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Do you recall the tariffs on steel and aluminum during the Trump administration?

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Or those persistent softwood lumber disputes? These instances aren't just trade

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spats, they're disruptions that highlight the fragility of our economic ties.

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And it's not just about trade. Our defense cooperation through NORAD and NATO

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means Canada's security decisions often follow Washington's lead.

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Previously, this worked well during

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times when the U.S. took a steady leadership role on the world stage.

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But lately, we've seen how fast that leadership can shift, from exiting international

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agreements to cozying up with autocratic regimes.

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This makes Canada's security stance somewhat conditional, dependent on who's

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in charge in Washington.

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Culturally and politically, the influence runs deep as well.

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We share language, media, and consumer habits with the U.S.,

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but that closeness also means that American political polarization,

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anti-science attitudes, and far-right activism are infiltrating Canadian society.

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This spillover makes it harder for Canada to maintain an independent voice,

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particularly on critical issues such as climate change and health care.

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So, where does this leave Canada? Stuck with a superpower that swings unpredictably

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with each election cycle.

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When your biggest partner can change direction every four years,

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you aren't in a relationship. You're independence.

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That's why many experts believe the smartest path forward is diversification.

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Not less partnership with the U.S., but more partnership overall,

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especially with a bloc like the European Union.

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Why the EU? Unlike the U.S., the EU comprises 27 democratic countries united

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by shared values, including democracy, human rights, climate leadership, and the rule of law.

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Their system of governance relies on consensus and compromise,

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meaning drastic policy reversals with each election are far less likely.

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It's a quieter, slower-moving ship, but a more stable one.

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One senior Canadian trade official famously said, It's easier to predict what

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Brussels will do in five years from now than what Washington will do next Tuesday.

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That contrast reveals a great deal about the nature of each partnership.

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Canada and the EU aren't starting from scratch either.

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Through CETA, the Comprehensive Economic and Trade Agreement,

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tariffs on 98% of goods have been removed, markets for services opened,

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and public procurement access granted.

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As U.S. trade policy becomes increasingly unpredictable, CETA stands as one

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of Canada's most stable and modern trade agreements.

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Beyond trade, the EU and Canada share a common vision on key global priorities.

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When the U.S. withdrew from the Paris Agreement, Canada and the EU continued

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to push climate action forward together.

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Their alignment on digital privacy, human rights, and multilateral diplomacy

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also reinforces an alliance built on trust rather than shifting political moods.

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There's also potential for innovation partnerships. The EU leads in clean energy,

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circular economy models, and AI regulation.

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Canadian firms, like Montreal's Enerchem, which converts waste into biofuels,

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have already begun scaling their ventures through EU connections,

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securing EU innovation fund backing and international collaborations without

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abandoning ties at home.

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But it's not

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All sunshine and roses. Geographically, the EU is farther away,

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and shipping costs and times can be a challenge for Canadian exporters.

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Non-tariff barriers, language differences, and compliance regulations within

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the EU's complex legal framework continue to pose obstacles,

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even with agreements like CETA in place.

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Some sectors face particular friction, especially agriculture.

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The dairy, poultry, and beef sectors are concerned about increased competition,

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and certain EU countries remain hesitant

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or outright opposed to full CETA ratification due to these concerns.

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Full EU membership, while theoretically possible, is politically unrealistic.

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It would compromise Canada's ability to negotiate bilateral trade agreements

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and requires unanimous approval of 27 nations, a hurdle even Ukraine hasn't

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cleared after years of effort.

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So what's the bottom line? Canada doesn't need to choose between the U.S. and the EU.

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In fact, trying to pick one is the wrong question altogether.

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Canada already maintains numerous international partnerships,

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from NATO and the CPTPP to relations with Japan, South Korea, the U.K., and Mexico.

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Our strength comes from multilateralism, strategic hedging, and building bridges

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rather than shutting doors.

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With leaders like Mark Carney, who brings global respect and experience in finance,

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climate change and diplomacy, Canada is uniquely positioned to serve as a bridge

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between these great powers.

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We can maintain the stability and shared values of the EU without abandoning

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decades of cooperation with the United States.

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To wrap this up, the world is shifting fast.

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Democracies are tested, trade is volatile, and alliances are fragile.

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Canada has an opportunity to lead by building a bigger table,

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more chairs, fewer walls, and a pragmatic strategic vision that prioritizes

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resilience over loyalty.

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So instead of asking, should Canada choose the EU or the US?

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Let's ask, how do we build a bigger table together?

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Thanks for listening. Be sure to subscribe, share, and join us next time as

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we continue exploring the big questions shaping Canada's future.

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Until then, stay curious and stay strategic.

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Thanks for pulling up a chair at Bigger Table. If you believe in more voices,

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fewer walls, and real progress, please help us grow.

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Follow, review, and share this podcast.

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Until next time, keep building a bigger table.