Canada Deepens Ties with Europe: Trade, Defence & Potential EU Membership

Brussels and Mexico City are at the centre of a diplomatic and economic push by the Canadian government, signalling a deliberate effort to diversify trade and security partnerships beyond the United States. Prime Minister Mark Carney’s administration is actively forging closer ties with Europe while simultaneously pursuing new commercial opportunities in Latin America.

Finance Minister François-Philippe Champagne is currently attending meetings of the Eurogroup – the gatherings of finance ministers from countries using the Euro – marking a significant step in Canada’s increasing engagement with the European Union. According to Champagne, Canada is now routinely invited to these meetings, with European counterparts expressing a desire for a “transatlantic voice” at the table. “They want to hear Canada,” he stated.

This increased access comes as the EU moves to bolster its own defence capabilities. Just prior to Champagne’s departure, the Council of the European Union February 11, 2026, gave the green light for negotiations regarding Canadian companies’ eligibility for SAFE – the Security Action for Europe fund, a €150 billion (approximately $244 billion CAD) initiative designed to support large-scale defence projects. Canada had already reached an agreement in principle over the summer to become the first non-European nation to participate in the program.

The move follows a speech delivered by Prime Minister Carney at the World Economic Forum in Davos earlier this year, where he called on “middle powers” to unite against “hegemonic powers” that disregard international norms. The speech resonated in Europe, with French newspaper Le Monde publishing excerpts. A recent editorial in the same publication even speculated on the possibility of Canada being welcomed as the 28th member of the European Union – an idea previously explored by the British publication The Economist.

Carney, who described Canada as “the most European of non-European countries” upon taking office in 2025, has also indicated his government’s intention to join the Eurovision Song Contest, further signalling a desire for closer cultural and political alignment with Europe.

Beyond Symbolic Gestures

However, experts caution against interpreting these developments as a prelude to full EU membership. “The fact that Here’s with the representatives of the Eurozone is quite significant… But becoming a member of the European Union, I don’t really believe that,” said Richard Ouellet, a professor of international economic law at Laval University. He suggests that the EU is unlikely to welcome Canada into the union given internal disagreements among member states.

Ouellet believes that both Canada and the EU share a common goal of expanding trade, which has already seen substantial growth since the implementation of the Comprehensive Economic and Trade Agreement (CETA) in 2016. CETA has reportedly increased trade between the EU and Canada by 71%, adding €3.2 billion to the EU’s GDP and €1.3 billion to Canada’s annually.

“Our government has a real willingness to detach ourselves from the American economy for the long term, because we cannot take it for granted that in three years [after the Trump presidency], the tariff crisis will be over,” Ouellet explained. “Our businesses need great predictability, and Europe is a market that offers stability, institutions that are not in crisis, where the rule of law is respected.”

Simultaneously, other members of Carney’s cabinet are engaged in a major trade mission to Mexico, described as the largest in Canadian history, with over 370 delegates participating. This initiative takes place against the backdrop of ongoing renegotiations of the Canada-United States-Mexico Agreement (CUSMA), the trade pact that currently shields Canada from most U.S. Tariffs. The outcome of these negotiations remains uncertain.

The dual focus on Europe and Mexico represents a strategic diversification effort by the Carney government, aimed at reducing Canada’s economic reliance on the United States and strengthening its position on the global stage. The government’s pursuit of deeper ties with Europe, particularly through participation in the SAFE program, underscores a commitment to bolstering Canada’s defence industry and fostering transatlantic cooperation. The trade mission to Mexico, meanwhile, highlights the importance of Latin America as a growing market for Canadian goods and services.

The Canadian government’s actions suggest a broader shift in foreign policy, prioritizing multilateralism and seeking to build stronger relationships with like-minded partners around the world. This approach reflects a desire to navigate an increasingly complex geopolitical landscape and secure Canada’s economic and security interests in a changing global order.