Canada’s Union with Europe

 

Canada's Prime Minister Mark Carney, European Council President António Costa and European Commission President Ursula von der Leyen at the EU-Canada Summit in Brussels on 23 June, 2025

Canada’s Union with Europe

Deepak Razdan

Monday, 30 June, 2025

Canada is re-establishing its identity, engaging with all parts of the world afresh, signing agreements and entering relationship treaties with major economies across continents.

Forced by US President Donald Trump’s rejection of a historic US-Canada neighbourly relationship, Canadian Prime Minister Mark Carney is visiting different countries, attending Summits to redefine Canada’s economic and security ties.

In Mr Carney’s latest achievement, Canada and the European Union have concluded a Security and Defence Partnership and launched cooperation initiatives in industrial policy and digital trade at a bilateral summit at Brussels on 23 June.

Although Mr Carney said “Canada’s new government has a mandate to diversify and strengthen international partnerships,” Canada’s move to go across the Atlantic and reaffirm a new relationship with the EU, was mainly due to US attitude.

President Trump condemned Canada along with the rest of the world for exploiting the US economy and creating many social problems, although the US and its people were used to a relationship of interdependence with Canada.

Angry at the Canadian digital services tax on US technology companies, Mr Trump said, in a week, he will announce import tariffs that Canada will have to pay “to do business with the United States of America.”

The Canadian economy is already facing challenges of reduced manufacturing and employment due to US tariffs on steel, aluminium and auto-sectors, along with a special punitive US tariff for Mexico and Canada.

Announcing the new relationship with the EU, the Canadian Prime Minister said Canada had taken a historic step forward to deepen its relationship with the European Union.

“Through increased co-operation in defence, trade, and commerce, we’ll create greater prosperity, security, and stability on both sides of the Atlantic,” he said.

European Commission President Ursula von der Leyen and European Council President António Costa welcomed Canada's Prime Minister in Brussels for the EU-Canada Summit.

The EU leaders said the Security and Defence Partnership will enable Canada to participate in joint defence procurements along with EU Member States under the SAFE instrument, reinforcing Canada's role in the EU's security architecture.

Mr Carney said the New EU-Canada Strategic Partnership of the Future is “rooted in shared values and the rules-based international system,” and strategically aimed to pursue common interests.

In an increasingly dangerous and divided world, Canada’s new government is focused on strengthening and diversifying its international partnerships.

While Mr Trump’s trade war has created economic insecurity for the world, particularly for economies dependent on exports, Russia’s war against Ukraine has created defence insecurity for whole of Europe, including the United Kingdom.

As no peaceful solutions are visible in the near future for the US trade war or the Russia-Ukraine war, every major country is looking for fresh defence and economic pacts.

Summits of leaders focus on these two issues, forgetting matters concerning climate change, medical challenges or social justice.

Mr Carney said Canada and the EU will however follow the conventional path and launch comprehensive negotiations across multiple areas like trade and economic security, the digital transition, and the fight against climate change and environmental degradation.

This will create more economic opportunities and long-term prosperity for workers, businesses, and citizens in both Canada and the EU, he said.

The Security and Defence Partnership will help Canada and the EU-Member States, which are NATO Allies, deliver on capability targets more quickly and economically.

This new partnership is the intentional first step toward Canada’s participation in Security Action for Europe (SAFE), an instrument of the ReArm Europe Plan/Readiness 2030.

Canada’s participation in this initiative will create significant defence procurement and industrial opportunities for Canada.

“We will work with the EU and other allies to build a new international, rules-based system for a more secure and prosperous world,” the Canadian Prime Minister said.

Affirming their shared views, the EU and Canada reiterated their unwavering support for Ukraine and committed to continue piling pressure on Russia to make it come to the negotiating table.

In the midst of current developments in the Middle East, the two sides called again for an immediate and permanent ceasefire in Gaza, the release of all hostages and the unimpeded access of humanitarian aid.

Likewise, they called for avoiding escalation between Israel and Iran, while restating that Iran cannot have nuclear weapons and that its destabilising role in the region needs to be addressed.

On trade and economy, the leaders celebrated the success of the EU-Canada Comprehensive and Economic Trade Agreement (CETA), which has led to an increase of 65 per cent in bilateral trade in goods since its provisional entry into application.

“CETA stands as strong symbol of the power of free and fair trade. I must say, 98 per cent of our tariff lines are at zero. I repeat it: zero,” President von der Leyen emphasised.

Building on that success, both partners have committed to strengthen cooperation under their Strategic Partnership on Raw Materials.

They launched an EU-Canada Industrial Policy Dialogue for government and industry representatives on both sides of the Atlantic to explore ways to reinforce common supply chains.

The EU and Canada will also start negotiations on a Digital Trade Agreement and they will explore ways to cooperate on Artificial Intelligence by aligning standards and eventually, by the participation of Canada in the EU's AI Factories initiative.

Canada’s agreements with the EU leave no doubt that Canada is redefining its relationships and must make up for the losses it has suffered due to US actions.

Sharing their fears about the end of the rules-based order in the world, Canada and the EU have confirmed their “unwavering commitment to the rules-based international order with the United Nations and its charter at its core.”

The EU and Canada will continue to cooperate closely in promoting international peace and security, democracy, human rights and gender equality.

The two sides reaffirmed their steadfast support for the independent functioning of the international criminal justice system, particularly the International Criminal Court.

“We condemn threats to the independent functioning of the ICC, including measures against individual officials,” they said.