Canada and Europe: A strategic partnership
Canada is Close to My Heart – Why I am Convinced that Europe is the Best Strategic Choice for Canadian Companies
I have spent a long time living in Canada and have continued to visit regularly for both business and personal reasons. As a result, I believe I know the country well and have developed a strong personal connection. Canada fascinates me in many ways, but what stands out most are its quiet diversity, its rule-based nature, openness, and innovative spirit—qualities that make it a highly interesting place for economic activities. And precisely because of this, I observe with growing interest and unease how Canadian companies are increasingly facing political uncertainties and economic challenges, especially concerning the U.S. market.
For a long time, the U.S. was the most obvious partner for Canadian companies. But things have changed.
”Political tensions, discussions about tariffs, and protectionist measures make it difficult to develop long-term strategies for the American market.“
There was even the rather unusual suggestion that Canada could become a U.S. state—a notion that many Canadians, along with others, including myself, view as both unlikely, to say the least, and concerning.
These developments make one thing clear: Alternatives are urgently needed because a tit-for-tat strategy only leads to escalating aggression and dissatisfaction. But Europe offers exactly what is needed.
Uncertainties in the U.S. Market—A Risk to Long-Term Growth
The last few years have shown us how volatile the American market has become. Economic conditions are strongly tied to the current administration, and political polarization makes long-term planning difficult. Companies that rely exclusively on the U.S. market expose themselves to significant risks.
However, Europe is not without its challenges either. The rise of right-wing populist movements in countries like Hungary and Poland has led to political tensions that have been straining cooperation between member states for years. This is evident in conflicts over migration, national sovereignty, and economic solidarity. But because the EU’s institutional structures are designed to manage such conflicts and find solutions, Europe remains a stable partner. Compared to the sudden and often unpredictable political shifts in the U.S. and the increasing willingness to resort to violence, Europe still offers a predictable environment for long-term investments.
Europe as a Stable and Reliable Partner: Thinking Anew
I am firmly convinced that the first step is to develop a new way of thinking and a new approach. It is no longer enough to cling to traditional partnerships just because they have worked in the past. Even the previously stable income from business with our southern neighbor is at risk in the medium or even short term. Instead, Canadian companies must be ready to combine their unique business traditions with new strategies to remain future-proof.
As mentioned, Europe offers an economic environment characterized by stability and clear rules—a trait of immeasurable value in uncertain times. With the Comprehensive Economic and Trade Agreement (CETA), Canadian companies have direct access to one of the world’s largest and most diversified markets. CETA removes trade barriers, protects investments, and facilitates the trade of services. I will address the debate over CETA’s potential downsides elsewhere.
But Europe is much more than just a large market. It is a network—some call it a patchwork—of highly developed markets like Germany and France, as well as emerging regions in Eastern Europe with enormous growth potential. This diversity allows Canadian companies to target their products and services effectively and benefit from the high purchasing power and innovative spirit of European countries.
Cultural Affinity as a Competitive Advantage
An often underestimated aspect is the significant cultural affinity between Canada and Europe. During my time in Canada, I repeatedly noticed how closely the values and mindsets of the two regions are intertwined. Multilateralism, sustainability, and social responsibility are core values deeply rooted in both Europe and Canada.
In contrast, the differences between Canada and Europe on one side and the U.S. on the other are often much more pronounced. Europeans place greater emphasis on social justice, community, and sustainability, while the U.S. often prioritizes individual achievements and economic competition. Canadian companies can and should leverage these commonalities with Europe to build trust and long-lasting business relationships.
Diversification as the Key to Success
Another reason why Europe is an ideal choice for Canadian companies lies in the necessity of diversification. Relying solely on the U.S. market poses risks that can be exacerbated by political decisions or economic protectionism. Europe offers an opportunity to spread these risks and open up new growth opportunities. A small note on the argument about distance: From Nova Scotia to Ireland, it is approximately 4,100 km, while the distance to Vancouver is 4,400 km.
Canada: Joining the EU!
Additionally, there is an exciting perspective that may sound far-fetched at first but holds great potential: the idea of a potential EU membership for Canada. For me, this is more than just the accession of 41 million people and the expansion of the economic area—it is also about strengthening our liberal democracies. Such a step would further deepen the integration between Canada and Europe and give Canadian companies access to one of the world’s largest single markets—without trade barriers and with maximum stability.
Conclusion: Europe as a Strategic Decision
For me, Europe is far more than just an alternative to the U.S.—it is a strategic decision for the future of Canadian companies. The political stability, economic benefits of CETA, and cultural commonalities create an environment where long-term growth is possible.
I firmly believe that now is the right time to deepen this partnership and harness Europe’s potential. The question Canadian companies should be asking is not whether they want to preserve the past but how they want to shape the future. Europe can be the decisive partner in this endeavor.
