EU, Canada Forge Closer Ties Amid Global Uncertainty

Updated June 24, 2025

Brussels and Ottawa‌ are strengthening their alliance,⁢ forging a new security and defense partnership and initiating discussions on‌ a digital⁤ trade agreement.⁣ This move comes amid global market and NATO alliance uncertainties, notably concerning long-term U.S. policy. The EU-Canada digital trade agreement aims to boost cooperation.

European Council President Antonio costa described the summit with Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen as a “powerful political statement.” He added, “We⁢ have agreed to⁤ forge even stronger bonds,” elevating their strategic partnership⁤ to unprecedented levels.

Carney noted the rules-based international order is “under threat.” He stated allies must choose between ⁤longing for the past‍ or building a new order⁢ through purpose and partnerships. “As the most European of the non-European countries, Canada looks‌ first ​to the European Union,” Carney said.

Security‌ and Defense Partnership

The Security ⁤and⁣ Defence ⁤partnership (SPD)​ enables joint efforts in crisis management, military​ mobility, maritime security, cyber and hybrid threats, defense industrial ‌cooperation, counter-terrorism, non-proliferation, disarmament, space‌ policy, and​ support⁣ for Ukraine. An EU official, speaking anonymously, called it “as⁢ thorough a framework we can offer to ⁤a third country.”

Canada will assign a defense‌ representative to the EU.​ Both parties ‍will explore an administrative arrangement⁤ between Canada⁢ and the European⁣ Defence Agency.This is Ottawa’s initial step toward ⁢accessing the EU’s €150 billion SAFE loan program ⁣for defense procurement. A second agreement is needed for ⁢canada to participate in joint procurement⁣ and for its industry to⁢ engage at ‌the same level as EU manufacturers.

Von der leyen pledged to⁤ “swiftly ‌launch talks”‌ for Canada to join SAFE, identifying areas for valuable cooperation ‍and joint investments. She emphasized reciprocity and security of supply as key principles.

Carney said ‍the ‌partnership⁤ should‍ help‍ allies on both sides of​ the Atlantic “deliver” on ​new NATO capability ⁢requirements “more ⁢rapidly and more effectively.” He added Canada intends to increase ammunition procurement.Currently, about 75% of Canada’s defense spending goes to the U.S., a practice ⁣Carney deems “not ⁤smart.”

this marks​ the EU’s second such‌ partnership in a month, following one with the U.K., as Washington’s commitment to NATO allies and⁣ Ukraine faces uncertainty. The agreements come ‍before ‍a NATO summit in The Hague, where allies are expected to raise the defense spending target⁣ from 2% to 5% of GDP.

Digital Trade Agreement

Amid trade⁢ tensions with the U.S.,the EU and Canada celebrated the success of the CETA⁣ free trade agreement. Von der Leyen noted CETA generated €123 ​billion in⁣ trade in 2023, with 98% of tariffs between the EU and Canada eliminated.‍ “CETA stands ‌as a strong symbol ⁢of the power ⁣of free and fair trade,” she⁣ said.

Building on their 2023 Digital ‌Partnership and CETA, negotiations have begun ​for​ a Digital trade Agreement. This new accord ‌aims to facilitate data flows⁤ and enhance cooperation ⁢on artificial intelligence, online platform regulation, cybersecurity, and digital standards. The EU and Canada digital trade‍ agreement is a priority.

The joint statement​ indicates both sides will align regulatory frameworks to improve online platform safety and inclusivity, develop AI systems,⁣ and establish interoperable digital identities.​ They also plan to⁣ increase joint work on AI‍ innovation through “AI Factories” and linked high-performance computing‌ infrastructure.

These talks align​ with the EU’s ‌intensified digital diplomacy. Earlier this month, Tech Commissioner Henna Vir