Last week in Strasbourg, European Commission President Ursula von der Leyen told European lawmakers she wants Canada to become the first “associate member” of the European Union. Prime Minister Mark Carney, sitting in the chamber, welcomed the idea on the spot.
Nobody has defined what associate membership means yet, and it does not exist in any EU treaty. But for investors watching Canadian exporters, government intent could matter much more than formal paperwork.
And with a trade war backdrop still shaping how Ottawa and Washington deal with each other, Canada has multiple reasons to widen its options.
Here are three TSX-listed export stocks that could benefit from a trade treaty between Canada and Europe.
Source: Getty Images
Why the trade war is pushing Canada toward Europe
Canada has spent the last two years leaning harder on trade diversification, and the numbers explain why.
According to Statistics Canada:
- The United States accounted for 71.7% of Canadian merchandise exports in 2025, down from 75.9% the year before.
- Exports to countries outside the U.S. jumped 17.2% over the same period.
- Two-way trade between Canada and the EU reached about €130 billion in 2025, roughly 80% higher than in 2016.
A summit between Canada and the EU is expected in Montreal this October, which should offer details on what associate membership could look like.
CAE looks built for Europe’s defence buildup
CAE (TSX: CAE) could be among the key beneficiaries of the potential Canada-Europe trade treaty. The company trains pilots and military personnel in more than 40 countries.
In fiscal Q1 2027, CAE reported revenue of $1.2 billion, an increase of 6.8% year over year. Its Defense and Security segment rose 8.3% to $531.8 million and ended Q1 with a defence backlog of $10.7 billion. Management pointed to more than $5 billion in potential pipeline value tied to partnerships with Leonardo, Saab, and TKMS.
In June, the EU formally concluded an agreement making Canada the first non-European country in SAFE, a €150 billion defense procurement program initiative.
CEO Matthew Bromberg summed up the company’s role in a recent shareholder call, saying, “A platform only matters if people can operate it, maintain it and use it under pressure.”
Basically, CAE has pitched governments to buy new defence hardware, and Europe’s rearmament plans could add more customers to that list.
Cameco sits at the centre of Europe’s energy security push
Europe wants to rely less on unreliable energy suppliers while keeping its nuclear fleet running, which should be a long-term tailwind for Cameco (TSX: CCO).
The company mines some of the world’s highest-grade uranium and has contracts locked in for average annual deliveries above 28 million pounds over the next five years.
Second quarter results missed expectations, with adjusted earnings of $77 million, mostly due to lower Westinghouse equity income. Still, an EU partnership built around energy security and critical minerals is the kind of policy tailwind a uranium producer wants.
Bombardier shows how Canadian manufacturing already reaches Europe
Bombardier (TSX: BBD.B) is the most cyclical name of the three, but it already supplies business jet airframes for Saab’s GlobalEye surveillance aircraft.
Second quarter revenue rose 6% to US$2.2 billion, services revenue hit a record US$674 million, and free cash flow came in at US$228 million. Backlog reached US$21.8 billion, up US$4.3 billion since the end of 2025.
Most buyers here are still wealthy private jet customers rather than European governments, so closer EU ties would be a bonus rather than the main reason to own the TSX stock.
The bottom line for Canadian investors
Notably, the EU cannot replace the deeply integrated trade relationship Canada has with the U.S. overnight.
What this story does offer is a window into where Canadian export strength is heading next, and which companies are already positioned for it.
