EU ‘most precarious’ it has ever been as it faces openly hostile world, von der Leyen warns

Ursula von der Leyen’s dramatic offer to open the gate to Canada to become the EU’s first ever associate member (9:54) cannot be underestimated in political and trade significance.

It, at once, aligns what Canadian prime minister Mark Carney called the “middle powers” in his Davos speech in January but creates an opening for a speedy enhanced trade deal particularly on critical raw materials and rare earths.

It also sets Canada apart from the UK which could, once upon a time, have some sort of associate membership with the EU were it not for the drive for a clean break Brexit. Two points of realpolitik make it possible that the long winding road that typifies third country’s relationships with the EU could turn into a high speed motorway.Canada has something the EU desperately needs: rich supplies of CRM and rare earths in a bid to diversify from China which has a stranglehold on both.And Europe has something Canada urgently wants: new market for products it can no longer sell into the US in the face of a trade war with Donald Trump. Looking at the bigger picture a new enhanced trade deal between the EU and Canada could leave the UK somewhat scrambling in a two speed race. Keir Starmer talked about forging a CRM and rare earths deal with Canada but it never materialised. If political energy in Brussels is now focused on Canada that could be bad news for Andy Burnham.