The European Union and Canada have solidified their partnership through a landmark Security and Defence Partnership and the launch of digital trade agreement negotiations, aiming to deepen ties amid global uncertainties in NATO and trade dynamics.
Summit Highlights
The 20th EU-Canada Summit, held in Brussels, followed a G7 meeting in Canada and preceded a NATO leaders’ summit in The Hague. European Council President Antonio Costa described the summit as a “significant political milestone,” emphasizing the commitment to elevate the EU-Canada strategic partnership to new heights. Canadian Prime Minister Mark Carney stressed the need to build a new rules-based international order through purposeful alliances, noting Canada’s strong alignment with the EU as the “most European of non-European nations.”
Security and Defence Partnership
A key outcome of the summit was the EU-Canada Security and Defence Partnership (SPD), a comprehensive framework covering:
- Crisis management
- Military mobility
- Maritime security
- Cyber and hybrid threats
- Defence industrial cooperation
- Counter-terrorism, non-proliferation, disarmament, and space policy
- Support for Ukraine
An EU official described the SPD as the most extensive security framework offered to a non-EU country. The agreement includes:
- Canada posting a defence representative to the EU
- Exploring an administrative arrangement with the European Defence Agency
- Initiating talks for Canada to join the EU’s €150 billion SAFE loan programme for defence procurement, enabling Canadian industries to participate in joint procurement on par with EU manufacturers
European Commission President Ursula von der Leyen emphasized reciprocity and security of supply as core principles, with plans to identify high-value cooperation areas for joint investments. Carney highlighted that the partnership would enhance NATO capability delivery, with Canada aiming to diversify defence spending, currently heavily directed toward the US.
This marks the EU’s second such agreement in a month, following a similar pact with the UK, as concerns grow over Washington’s long-term commitment to NATO and Ukraine’s defence against Russia.
Digital Trade Agreement
Building on the success of the Comprehensive Economic and Trade Agreement (CETA), which generated €123 billion in trade in 2023 with 98% of tariffs eliminated, the EU and Canada launched negotiations for a Digital Trade Agreement. This accord will focus on:
- Facilitating data flows
- Deepening cooperation on artificial intelligence
- Regulating online platforms
- Enhancing cybersecurity
- Establishing interoperable digital identities
- Linking high-performance computing infrastructure through “AI Factories”
The agreement aligns with the EU’s Global Digital Strategy, as outlined by Tech Commissioner Henna Virkkunen, and follows similar digital trade pacts with Singapore and South Korea. The first EU-Canada Digital Partnership Council is slated for later this year.
Broader Context
The agreements come amid trade tensions with the US and uncertainties in global alliances. The NATO summit in The Hague will see allies agree to increase defence spending from 2% to 5% of GDP, underscoring the urgency of strengthened partnerships. The EU and Canada’s joint efforts signal a proactive approach to building resilient, cooperative frameworks in defence and digital innovation.
