The EU and Canada are deepening their partnership as geopolitical tensions and strained ties with the United States encourage them to rely less on major powers, especially for technology and essential materials. At a Montreal summit, leaders described a broad “alliance for the future” spanning defence, economic growth, sustainability and personal exchanges. The partners plan closer energy cooperation, including a study of Canadian liquefied natural gas exports to Europe, and updated nuclear cooperation. They also aim to attract European investment to develop Canadian deposits of critical minerals used in batteries, semiconductors, electric vehicles and defence; EU imports of these materials from Canada rose 62% from 2024 to 2025.
Plans also cover reducing trade barriers, establishing a digital trade agreement, coordinating AI regulation and security, and giving Canada access to EU high-performance computing infrastructure. Trade in goods and services between them grew 80% from 2016 to 2025, though the existing CETA trade pact remains only provisionally applied. The sides reaffirmed support for Ukraine and outlined greater cooperation on defence, cybersecurity and critical infrastructure. A proposal to call Canada an “associate member” of the EU remains disputed: Commission President Ursula von der Leyen supports the label, while German Chancellor Friedrich Merz rejects it, and the phrase was omitted from the summit declaration. The partners will develop a closer-ties plan by 2027, while US President Donald Trump has warned that such rapprochement could prompt tariffs or trade restrictions.
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