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Brussels | June, 2025 – Canada and the European Union signed a new security and defense agreement on Monday, aimed at deepening transatlantic cooperation amid growing global instability and evolving geopolitical alliances.
The agreement enables Canadian companies to participate in EU-funded defense procurement programs, granting them access to the EU’s €150 billion joint defense fund—marking a significant milestone in military-industrial collaboration between the two partners.
The move reflects shared concerns over geopolitical uncertainty, declining transatlantic consensus, and increasingly strained relations with the United States on global security leadership.
Enhanced Defense Cooperation
Under the agreement, Canadian firms can contribute to and benefit from EU defense and arms development projects, allowing for closer integration with European defense supply chains and joint capabilities development. This cooperation is expected to bolster NATO interoperability while providing the EU with a reliable North American partner for strategic defense investments.
EU officials described the deal as a “pragmatic alignment” of two like-minded democracies with strong security traditions and commitments to multilateralism.
Broader Strategic Agenda: Tech and Raw Materials
Beyond defense, both parties committed to launching negotiations on a comprehensive digital and technology agreement. The proposed accord would include joint initiatives on:
- Artificial Intelligence (AI) innovation and governance
- High-performance computing
- Strategic research collaboration in emerging technologies
The agreement would also aim to secure EU access to critical Canadian raw materials, such as lithium, nickel, and rare earth elements—resources vital to Europe’s green and digital transitions.
A Strategic Pivot Amid Global Tensions
The deal marks a strategic recalibration in light of shifting global alliances. Analysts view it as a signal that the EU is seeking to diversify security partnerships beyond the United States, particularly in areas of industrial and technological cooperation. Canada’s alignment with EU defense frameworks represents one of the most concrete signs of this pivot.
The EU-Canada agreement builds on the existing Canada-EU Strategic Partnership Agreement (SPA) and Comprehensive Economic and Trade Agreement (CETA), expanding the relationship into the realm of defense, dual-use technologies, and supply chain resilience.
Further negotiations on the digital and tech partnership are expected to begin later this year.
