Canada and the EU Sign Major Security and Defence Partnership: Key Details

In a landmark move, Canada and the EU have officially entered into a Security and Defence Partnership aimed at deepening their cooperation on defence, security, and trade. Signed at a joint summit in Brussels on June 23, 2025, the deal promises to strengthen ties between the two entities in the wake of growing global uncertainties. This agreement marks a new chapter in Canada’s transatlantic relationships, offering significant opportunities in defence procurement and trade.

New Defence and Security Cooperation

The partnership focuses on improving both countries’ security and defence collaboration. Prime Minister Mark Carney traveled to Brussels to sign the deal, which includes Canada’s participation in Europe’s ReArm Europe initiative, a 150-billion-euro defence procurement program aimed at enhancing military preparedness across Europe.

Carney highlighted that Canada aims to reduce its reliance on the United States for both trade and security, with this new agreement providing a more diverse and secure future for both sides. “We are going to build trading relationships with like-minded partners,” Carney stated during a press conference following the summit.

The agreement also involves a series of cooperative actions:

• Annual security and defence dialogues to foster ongoing collaboration.
• Expanded support for Ukraine and its defence needs.
• Strengthened military mobility in Europe.
• Enhanced maritime cooperation in the Indo-Pacific region.
  

A Key Step Toward Joint Procurement

One of the major highlights of the new partnership is Canada’s access to joint military procurement through the SAFE Fund (Security and Defence Cooperation Fund). This will allow Canada to contribute to and benefit from the EU’s extensive defence industry, focusing on interoperability between Canadian and European military forces.

European Commission President Ursula von der Leyen emphasized the importance of joint procurements, which can offer better, cheaper, and faster results by scaling up production and strengthening the industry. However, Canada will need to finalize a second agreement with the European Commission before officially participating in the ReArm Europe initiative.

A Broader Trade Agenda

While the defence agreement is crucial, trade remains central to the EU-Canada relationship. The Comprehensive Economic and Trade Agreement (CETA), signed nearly a decade ago, has already resulted in a 65% increase in bilateral trade since its provisional entry into force. In fact, 98% of tariff lines between Canada and the EU are now at zero, enabling free and fair trade between the two regions.

Building on this success, the EU and Canada have agreed to:

• Expand cooperation in raw materials and industrial policy.
• Launch negotiations for a Digital Trade Agreement.
• Explore collaboration on Artificial Intelligence (AI) through the EU’s AI Factories initiative.

These efforts aim to reinforce supply chains and ensure that both regions remain competitive in the global economy, while promoting fairness and innovation.

Continued Support for Ukraine and Global Stability

Both Canada and the EU reaffirmed their support for Ukraine, committing to continued pressure on Russia to enter peace negotiations. They also pledged to assist Moldova in defending itself from external destabilizing forces.

In addition, the EU and Canada emphasized the importance of a permanent ceasefire in Gaza and the release of hostages in conflict zones. Both sides also condemned Iran’s destabilizing role in the Middle East and reiterated their opposition to Iran acquiring nuclear weapons.

Looking Ahead

As Canada and the EU strengthen their strategic partnership, the new Security and Defence Partnership will be key in navigating an increasingly uncertain global landscape. The initiative not only strengthens military ties but also opens the door to broader collaboration in defence, trade, and emerging technologies.

How do you think Canada’s growing defence and trade ties with Europe will impact its future global role?

More…

• https://www.pm.gc.ca/en/news/news-releases/2025/06/23/canada-announces-new-strengthened-partnership-european
• https://globalnews.ca/news/11254883/canada-europe-carney-partnership-defence-trade
• https://ec.europa.eu/commission/presscorner/detail/en/ac_25_1601