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Australia is aligned with Canada’s efforts to seek closer ties with the EU as Ottawa faces an escalating trade dispute with the US.

After the Wall Street Journal reported that Canada was exploring “associate member” status of the EU, prime minister Mark Carney clarified on Sunday that his nation was seeking a “unique alliance” with the bloc rather than full membership.

“We are on the same page," Australian trade minister Don Farrell told the Sydney Morning Herald on Tuesday. "We will take great interest in what Carney does."

Mr Farrell did not elaborate on whether Australia was actively pursuing a deeper relationship with the EU, or what form that could take.

Australia has sought to diversify its trade after facing US tariffs on exports, despite its long-standing security pact and free trade deal with Washington.

A spokesperson for the Department of Foreign Affairs and Trade did not respond to a comment request.

Canada and the EU are discussing allowing Canadian goods, services and workers in key sectors – AI, energy, defence, and critical minerals – to move freely, effectively shifting the EU border, according to the Journal. Talks encompass shared infrastructure projects such as underwater cables, data centres, cloud storage, satellite networks, and energy transport facilities.

Mr Carney has spoken regularly with EU leaders, most notably French president Emmanuel Macron, about allowing Canadians to live and work visa-free in the EU, the paper reported, citing two unnamed officials.

Mr Farrell said he was open to all options in future arrangements with the EU, excluding fibre-optic cables given the distances.

"The world is dividing into protectionists and free traders," he said. "It's indisputable that Australian prosperity of the last 50 years has all been about our engagement with the world."

Australia and the EU signed a free trade agreement in March after eight years of talks, removing tariffs on almost all goods and potentially easing EU access to Australian critical minerals.