Canada and EU drop associate membership plan, pursue closer ties

▲ Escalating

EU gas tops €100/MWh for first time since 2022; Canada and EU drop associate plan

On Wednesday European gas topped €100 per megawatt hour, the highest since 2022, with EU storage 72% full. The EU says it is not worried about supplies but warns of a difficult winter for households. A joint declaration ahead of Thursday's summit in Montreal says Canada and the EU will deepen ties but have dropped the proposal for associate EU membership, which the EU had floated on Wednesday.

• Gas reached €97 per MWh on Monday, amid fears of Middle East supply disruption and reports of US-Israeli plans to strike Iran, before passing €100 on Wednesday.
• Prime Minister Mark Carney is seeking to reduce Canada's reliance on the US, despite warnings from Donald Trump; Canada also signed a trade deal with the UAE on Wednesday.
• Internal documents say Canada faces an EU carbon tariff threat within months as the bloc fully implements its Carbon Border Adjustment Mechanism.
• US Trade Representative Jamieson Greer warned on Tuesday that a $3.4 billion European Investment Bank loan to Airbus could jeopardise the US-EU tariff truce.