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EU Considers Canada for First Associate Membership, von der Leyen Says

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The European Union is opening the door for Canada to become its first "associate member," said European Commission President Ursula von der Leyen on Wednesday, as the two sides seek closer ties amid worsening relations with the United States.

The EU and Canada would strengthen their ties in areas such as Artificial Intelligence, critical minerals and energy, as well as a broader technology alliance, closer defense-industrial ties and joint Arctic projects, said von der Leyen in her annual State of the EU address to the European Parliament in Strasbourg.

"I would like to work with you on opening the door for Canada to be the first associate member of the EU," she said in her parliamentary address, attended by Canadian Prime Minister Mark Carney.

On Tuesday, Prime Minister Carney said Canada was working on a "unique" alliance with the EU. Canada is seeking to attract CA$1 trillion in investments over the next five years as it aims to reduce its reliance on the US for its trade amid increasingly strained relations with President Donald Trump.

"We want to bring the relationship with Canada to the highest level possible," said von der Leyen in Wednesday's speech at the European Parliament.

The EC president was explicit that the initiative wasn't aimed at countering the US.

"This is a partnership not against anyone else," added von der Leyen.

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International

New Zealand Parliament Approves India Free Trade Agreement

New Zealand's Parliament passed legislation for a free trade agreement with India by a 93-29 vote, Trade and Investment Minister Todd McClay said in a statement on Wednesday.The agreement will make 57% of New Zealand's exports to India duty-free from day one, with tariffs eliminated or significantly reduced on 95% of exports once fully implemented.The FTA is expected to enter into force this year after both countries complete their respective ratification procedures, the statement said.

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International

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International

Further Widening of New Zealand's Current Account Deficit to Be Expected in the Wake of Higher Costs for Imported Energy, Other Products, Westpac Says

Further widening of New Zealand's current account deficit can be expected in coming quarters as the full impact of higher costs for imported energy and related products feeds into the data, Westpac said in a Wednesday report.New Zealand recorded a seasonally adjusted current account deficit of NZ$3.8 billion in the June quarter, narrowing NZ$666 million from the previous quarter. The current account deficit widened to 3.2% of GDP in the year to June, in line with expectations.For the second year in a row, the release of balance of payments data for the June quarter contained historical revisions to estimates of the current account deficit. The deficit for the year to March is now estimated at 3% of the gross domestic product (GDP), rather than the 3.6% of GDP deficit that was estimated previously.The key revisions concerned primary income flows, with new estimates pointing to higher returns earned on New Zealand's investment abroad and lower returns paid on foreign investments in New Zealand.The revisions have no implications for the bank's estimate of June quarter GDP growth, which remains 0.2%.New Zealand's international investment position improved in the June quarter, reflecting favorable changes to offshore asset valuations, falling to NZ$178.3 billion, or 39% of GDP, from NZ$191.7 billion, or 42.5% of GDP, in the March quarter. The liability is mostly related to debt, with net external debt reaching 49.4% of GDP in the June quarter.

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