AI, resources and water bombers: Draft document maps Canada, EU path to closer ties

Canada and the European Union are teaming up to bolster their partnership, with a focus on digital security, vital resources, and a proposed fleet of Canadian water bombers, according to a draft joint statement ahead of an upcoming summit. The agreement, called an "alliance for the future," aims to let Canadian firms compete for cloud and artificial intelligence contracts, typically reserved for European companies, to reduce dependence on the United States.

The statement also outlines plans for Canada to join Europe's Galileo satellite navigation system and a deal to help European investment in Canadian critical minerals. Moreover, the draft states that Canada will work to "strengthen digital sovereignty" and align regulatory frameworks through associated country status under the European Commission's proposed Cloud and AI Development Act.

This would grant Canada the same access to contracts as member countries. However, convincing U.S.-focused tech firms in Canada to shift towards Europe may prove challenging, as Canadian businesses have long relied on working with American markets.