OTTAWA — Canadian exporters could face European carbon tariffs on $2.8 billion worth of goods annually as Prime Minister Mark Carney pursues closer ties with the European Union.Internal Global Affairs Canada documents obtained by CBC News reveal that Canadian steel and aluminum exports could face additional costs under the EU's Carbon Border Adjustment Mechanism (CBAM).Conservative MP Dan Mazier took aim at Carney on Wednesday.“Canadian industries face a massive EU CARBON TAX while Mark Carney secretly negotiates to make Canada a member of the European Union,” Mazier said.“And let’s not forget, the European Union already imposes massive carbon taxes on its members.”“Why isn’t Parliament debating this while Canadians are kept in the dark?”The criticism comes ahead of Thursday's Canada-EU summit in Montreal, where Carney will meet European Commission President Ursula von der Leyen and European Council President António Costa..Von der Leyen has proposed giving Canada associate membership in the EU, although Politico reported Tuesday that Germany and several other European countries remain opposed to the designation.Canada is not seeking full EU membership.According to CBC, a December 2025 federal briefing note acknowledged that an exemption from Europe's carbon border mechanism was “not currently possible.”The documents also identified a gap between carbon prices, with the EU's price at approximately $134 per tonne in 2025 compared with Canada's $95.The European mechanism covers steel, aluminum, cement, fertilizers, electricity and hydrogen. Its financial obligations for 2026 imports are scheduled to be paid in 2027.Trade policy expert Aaron Cosbey told CBC the charges could eventually add approximately $150 per tonne to Canadian steel exports by 2034.“That's more than 10% of the price of a tonne of steel on the open market these days. So that's a significant cost,” Cosbey said.Environment Minister Julie Dabrusin defended Ottawa's approach in an interview with CBC.“My goal always is to make sure that we have an industrial carbon pricing system that's effective and that works for making sure that our industry is competitive and that we are supporting Canadian jobs,” she said.Canada already has a free trade agreement with the EU under CETA, but that agreement does not exempt Canadian goods from the carbon border mechanism.The Western Standard will be reporting from the Canada-EU summit in Montreal on October 29 and 30.
