EU, Canada to build 'new chapter' in alliance at summit

Canada and the EU are set to discuss a comprehensive partnership aimed at countering the influence of the United States and China at a Montreal summit. Currently, the two nations enjoy a free trade agreement and defense cooperation, but they now seek to expand their collaboration in various domains.

During September, EU chief Ursula von der Leyen hinted at Canada becoming the EU's first "associate member," a term not officially recognized in EU treaties. While some EU states express reservations about using the term before it is properly defined, it reflects the bloc's desire to forge a close partnership with Canada without full membership.

Under this arrangement, Canada would align its policies with the EU in areas such as climate change, energy, and artificial intelligence, participate in select EU programs, and contribute to a governance structure. This would draw on Canada's recent invitations to EU summits and ministerial meetings.

Canada's mineral resources, particularly rare earths and critical minerals essential for green technologies, are of interest to Europe, which typically sources these materials from China. However, mining in Canada has yet to take off due to a lack of investment and buyer commitment. The EU summit could potentially lead to an agreement enabling the European Investment Bank to finance Canadian critical minerals projects.

Additionally, discussions will center on joint stockpiling of materials to stabilize supply and demand. Both nations are also exploring digital trade, with a digital trade deal expected to be announced, and cooperation on artificial intelligence infrastructure and regulation. The summit aims to pave the way for Canada's potential inclusion in the EU’s Galileo satellite system and IRIS² project, providing an alternative to the U.S. GPS and Starlink satellite constellation.

The partnership is also expected to enhance people-to-people contact, job mobility, and scientific collaboration, including access to Horizon Europe, the EU’s main research funding program. The EU is prepared to share its supercomputing resources with Canadian researchers. Energy relations will be strengthened through potential Canadian liquefied natural gas exports and renewable energy development.

The joint purchase of 50 water bombers manufactured by Canadian firm De Havilland was previously discussed but has since been abandoned due to opposition from some EU member states.