‘Deepest possible partnership’: Canada and EU announce new alliance

Canada and the European Union have announced a new alliance, described as the "deepest possible partnership" between the two nations. The alliance, dubbed the Alliance for the Future, was unveiled at a summit in Montreal and is open to other countries joining. Prime Minister Mark Carney and European Commission President Ursula von der Leyen emphasized the partnership's potential to provide stability and opportunities amidst challenges such as climate change, erosion of democratic norms, and the weaponization of trade.

The alliance aims to create a more integrated market, reduce trade and travel restrictions, and offer educational opportunities for both sides. It also seeks to address concerns about Canada's over-reliance on American companies, particularly in defense, and its defense technologies being subject to political actors or companies with opposing interests.

Canada and the EU plan to merge their artificial intelligence companies, with the newly formed entity having dual headquarters in Berlin and Toronto, and Canada investing up to C$1.6bn in the company. Leaders also announced Canada's participation in Europe's supercomputing network, improving access to European machines for AI model training.

The alliance is seen as an opportunity to address key sources of anxiety for residents, including the cost of living, by promoting competition and choice in supply chains. Canadian and EU leaders proposed Canada as an associate member, a designation they believe could strengthen their relationship without implying legal inferiority.

However, the idea has raised concerns in Quebec's separatist Parti Québécois, with the province's premier skipping the summit due to Ottawa's refusal to grant him a speaking role.