In a major international development, European Commission President Ursula von der Leyen has proposed that Canada become the European Union’s first associate member.

The proposal was announced Wednesday during the European Commission president’s annual address to the European Parliament in Strasbourg, where Prime Minister Mark Carney was present.

The proposed arrangement would seek to take Canada-EU cooperation beyond existing trade relations. Areas under discussion include defence, energy, technology, artificial intelligence, critical minerals and economic security.

Canadian officials welcomed the proposal as Ottawa continues efforts to strengthen relationships with international partners. Canada has already joined a major EU defence procurement initiative, while both sides are discussing additional economic and security cooperation.

However, the concept of associate membership is new and its specific rights, obligations and market-access arrangements have not yet been finalized. The proposal would also require agreement among EU member states.

The development comes as Canada seeks to expand its international partnerships amid ongoing trade tensions with the United States.

The proposal could mark a significant new phase in Canada-Europe relations, with further discussions expected at a Canada-EU summit planned for Montreal in October.