UK-Canada Trade

Two weeks ago Ursula von der Leyen invited Canada to become the EU's first associate member, and Mark Carney got a standing ovation in Strasbourg for saying yes. Graham Lanktree's reaction, more or less: "Show me the money."

Graham is POLITICO's senior trade reporter in London, an Ottawa kid 14 years into a London posting, and he covers Britain's trade relationships with Europe, the United States, and Canada. Last month he co-wrote the piece arguing that Carney's middle powers alliance arrived before the middle powers were ready. Days later, Europe sent the invitation.

What we got into:

• Warm words and trade flows. Graham on why Strasbourg was a political signal, and why none of this shows up in anyone's quarterly results before 2028.
• The Homer-in-the-hedge strategy. Graham's read on how the Burnham government handles Trump: keep the Starmer deal, blame Starmer for its flaws, and hope the president forgets Britain exists. Plus the New York readout, in which the prime minister raised an unnamed company's trade problem.
• "Fresh air and clean water." Seventy percent of Britons, including half of Reform voters, want closer ties with the EU. Andrew explains why that number means nothing, and which question would.
• Why Labour reopened Brexit. Burnham told conference the next manifesto will debate a customs union, or rejoining. His own business secretary told POLITICO the conversation isn't helpful. Graham sides with the business secretary.
• The last one percent. CPTPP now covers 99 percent of Canada–UK trade. The missing one percent comes down to two companies, Canada Goose and Jaguar Land Rover, and a rules-of-origin fight neither side can finish.
• Chlorinated chicken, Canadian edition. The issue that sank a UK–US deal under Boris Johnson is the same one blocking Canada, minus the shouting. Andrew's inbox from the CETA years.

Also discussed: Carney's convening power and Churchill Falls, Canada's new seat at the table on Britain's next fighter jet, Andrew's theory that the British are "funny buggers" who vote for something, regret it, and still don't want to undo it, why nobody marches for white-collar jobs, and a G20 trade ministers' meeting where the real conversation is Chinese steel.

Graham's closer: Carney and Trump both said this week they think a deal is possible. That's warmer than anything we've heard in a month. Whether it's more than words, the next 90 days will tell.

Find Graham's reporting at POLITICO Europe and on X @g_lanktree.