EU and Canada form strategic alliance on minerals and AI technologies

Squeezed by the United States and China, the European Union and Canada are set to unveil a series of deals on Friday aimed at boosting their strategic alliance to unprecedented levels. EU officials Ursula von der Leyen and Antonio Costa will meet with Canadian Prime Minister Mark Carney in Montreal during a summit that includes talks between Canadian ministers and senior EU officials.

Carney emphasized the importance of shared values and the necessity of cooperation to counterbalance the rupture in the global system caused by the upending of relations with traditional allies. Canada and the EU have both faced tariffs and territorial threats since the return of Donald Trump to the White House.

Both countries share a free trade agreement and have been seeking to deepen their relationship, with Carney stating that they both want to bring their partnership to the highest possible level. Critical minerals, essential for green technologies like batteries and wind turbines, are a key focus of the summit. While Europe relies heavily on China for these minerals, Canada possesses substantial reserves.

An agreement enabling the European Investment Bank to support Canadian critical mineral projects is anticipated to be announced at the summit.

The partners also aim to collaborate on artificial intelligence (AI), an area where they are playing catch-up with the United States and China. Von der Leyen explained that Europe would open its supercomputing infrastructure to Canadian researchers, industry, and startups, allowing access to advanced technologies.

Ottawa recently announced a CAD 1.6 billion investment in Canadian AI firm Cohere, which has partnered with Germany's Aleph Alpha. Carney highlighted this partnership as an example of what Europe and Canada could accomplish together. He stressed that Europe and Canada will not wait for the future of AI to be determined by untrustworthy players.

Additionally, a digital trade deal allowing for faster and cheaper online transactions is expected to be unveiled in Montreal. The summit will also lay the groundwork for Canada's participation in EU initiatives such as the Erasmus youth scheme and the Galileo satellite program, providing an alternative to the American GPS system.

While the EU-Canada partnership has not been well-received in Washington, Carney attempted to reassure his southern neighbor by highlighting that the United States would also benefit from diversifying Canada's ties.