As our resident Canadian this comes out of nowhere and geographically doesn't make much sense. Fortunately, I'm staying right where I am at if John and Sarah win (California).
It comes at a strange time because the Canadian election is two weeks away and its looking more and more like a majority Conservative gov't as the Liberal party and Bloc seem to be collapsing upon themselves. In other words this may be gamesmanship.
I can't see the US allowing this without their own FTA with the EU in place. It would allow Canada access to US and European goods and allow them to manufacture or sell them back to the other markets without a penalty.
Certainly both the EU and the US would certify certain goods as imports to prevent them from bypassing tariffs but they can't stop it all, especially manufactured goods. How are the regulators going to know where this automobile got its steel, etc.
Canada has not been happy with the US's arbitrary softwood lumber duties, especially during the housing boom. It was in in violation of the WTO and NAFTA. Lumber is the bulk of Canada's economy (although energy may have surpassed it these days).
However, Europe is not going to like a lot of Canadian lumber in their market either and its gov'ts usually cry "save the trees" whenever they have to deal with Canadian competition. Likewise, Canada's lumber industry and its Provincial gov'ts are not going to like EU regulation.
Let's not forget Canada's Marketing Boards. Canada's Wheat Marketing Board dominates like no other single organization. The US and the EU are centered on grain subsidies. This smacks of too many complications. What to do about genetically modified food. The EU is very much against them (some say on principal, others because they can't compete). Canada has had genetically modified foods for years such as Canola Oil.
It doesn't make much sense. Canada was part of the Commonwealth at one time but a lot has changed since the UK joined the EU.
And yes, its called backbacon. We also make the best Maple Syrup and grow more potatoes than Idaho, TYVM.