Canada is set to host a summit with the European Union to bolster bilateral strategic and economic ties as its relations with its southern neighbour, the United States, are in sharp decline. The summit is scheduled for October 29 to 30 in Canada’s French-speaking city of Montreal, and is expected to focus on closer cooperation on trade, technology, defence, energy, critical minerals, artificial intelligence, research and financial services. In September, European Commission President Ursula von der Leyen proposed opening the door for Canada to become the EU’s first “associate member”; Canadian Prime Minister Mark Carney welcomed the move.
This will be the 21st Canada-EU summit and is expected to build on the Comprehensive Economic and Trade Agreement (CETA), which entered into force in 2017. It eliminates duties on up to 99 percent of all imported goods between the two sides, according to the European Council. They are expected to issue a joint statement.
The deepening Canada-EU alignment seems fuelled by US President Donald Trump’s policies, which imposed hefty tariffs on both Canadian and European exports to the US and pushed Canada to look for ways to reduce its economic dependence on the US. Before Trump’s tariffs whipsawed relations, Canada sent nearly 80 percent of its exports to the US. In August, trade talks between Ottawa and Washington, DC, broke down, and Trump imposed a 50 percent levy on $20bn of Canadian goods, or 5.5 percent of its exports.
Canada responded with equivalent tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Both sides are seeking opportunities that will open more options beyond the world’s largest economy. The EU brings market power, research depth, and manufacturing strength.
Canada brings abundant energy, critical minerals, world-class capabilities in space, artificial intelligence (AI), and quantum, and one of the world’s strongest banking systems,” Carney’s office said in a statement. The summit will give the two sides a chance to turn these “complementary strengths into concrete benefits for our peoples,” the statement added. Vina Nadjibulla, co-founder and CEO of the Centre for Strategic Statecraft, a think tank in Ottawa, Canada, sees benefits and challenges.
The EU describes Canada as “the only non-European country” taking part in Security Action for Europe (SAFE), the EU’s 150 billion-euro ($167bn) loan programme that supports and expedites defence procurement by EU member states. The EU concluded its agreement with Canada, allowing it to participate under SAFE, in February, and it gives Canadian firms preferential access and treatment in defence procurements financed by the SAFE Instrument. Last month, von der Leyen proposed that Canada could become the EU’s first associate member, suggesting a deeper relationship spanning trade, technology, defence and economic security.
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