EU & Canada Forge Strategic Alliance In Defence And Trade

June 24, 2025: In a landmark development, the European Union and Canada have signed a comprehensive Security and Defence Partnership (SDP) and launched negotiations for a Digital Trade Agreement, signalling a deeper strategic alliance amid growing geopolitical and economic uncertainties.

The 20th EU-Canada summit, held just after the G7 meeting and ahead of the NATO leaders’ gathering in The Hague, marks a new chapter in Brussels-Ottawa relations.

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European Council President Antonio Costa hailed the event as a “powerful political statement”, emphasizing that both sides are elevating their partnership to an “unprecedented level of closeness.”

EU-Canada Sign Security and Defence Partnership

At the core of the summit was the signing of the EU-Canada Security and Defence Partnership, which will enable joint efforts in:

• Military mobility and crisis management
• Cybersecurity and hybrid threat response
• Maritime security and counter-terrorism
• Defence industry cooperation
• Disarmament, non-proliferation, and space policy
• Continued support for Ukraine

Canada will also appoint a defence representative to the EU, and both sides plan to explore an administrative arrangement with the European Defence Agency.

This agreement is also a gateway for Canada to participate in the EU’s €150 billion SAFE defence procurement programme, pending further negotiations.

European Commission President Ursula von der Leyen said talks will begin promptly, focusing on security of supply and reciprocity, while Canadian Prime Minister Mark Carney emphasized the need to diversify defence procurement beyond reliance on the United States.

This is the second such defence pact the EU has signed in a month, following a similar agreement with the UK, amid ongoing concerns over Washington’s commitment to NATO and Ukraine.

Launch of EU-Canada Digital Trade Agreement Talks

Furthering economic cooperation, the EU and Canada announced the start of talks on a Digital Trade Agreement. Building upon the 2023 EU-Canada Digital Partnership and the CETA free trade agreement, the new digital pact aims to:

• Facilitate secure and seamless cross-border data flows
• Align regulations for online platform governance
• Advance AI collaboration, including through “AI Factories”
• Create interoperable digital identities
• Enhance cybersecurity and digital infrastructure cooperation

In 2023, trade between the EU and Canada under CETA reached €123 billion, with 98% of tariffs eliminated, underscoring the strong foundation on which the new digital deal will build.

The first EU-Canada Digital Partnership Council is expected to convene later in 2025, with both sides committed to fostering an inclusive, secure, and innovation-driven digital ecosystem.

A Strategic Shift Amid Global Uncertainty

With the global rules-based order under pressure, Carney stressed the importance of building “a new world with purpose and partnerships,” calling Canada “the most European of the non-European countries.”

This strategic pivot comes as NATO allies prepare to raise their defence spending targets from 2% to 5% of GDP, and as the EU intensifies its global digital and defence footprint in coordination with trusted allies.

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