The European Union and Canada are preparing to unveil a broad strategic alliance covering trade, defence and economic cooperation, in a move aimed at giving both partners greater weight amid competition between the United States and China.
According to Bloomberg, European Commission president Ursula von der Leyen is expected to set out the initiative during her State of the Union address in Strasbourg on 16 September. Canadian prime minister Mark Carney is due to attend the speech and address MEPs the following day.
The proposed framework would deepen co-operation in critical supply chains, raw materials, space exploration and scientific research, while also strengthening links between the EU and Canadian defence industries.
EU-Canada alliance to expand trade and defence ties
The plans build on an existing trade agreement and the security and defence partnership signed by the two sides in June 2025. Officials are also examining how closely Canada could align with the EU single market, although legal and regulatory issues would need to be resolved.
Canada has already secured a role in the EU’s Security Action for Europe, or SAFE, scheme. The €150 billion instrument provides loans to EU member states for joint defence procurement, and Canada became the first non-European country to participate after an agreement was concluded in 2025.
The partnership is expected to include further work on the supply of critical minerals and other raw materials, as well as digital trade, energy and clean technology. These areas have become central to efforts by Western economies to reduce their dependence on dominant suppliers and make key industries more resilient.
The initiative comes as Ottawa and Brussels seek closer ties in response to a more uncertain global trading and security environment. Mr Carney has argued that the established rules-based international order has been weakened, while the EU and Canada have increasingly presented themselves as partners with shared democratic values and an interest in multilateral co-operation.
Further decisions are expected at the next EU-Canada summit, due to take place in Canada on 29 and 30 October. The meeting is expected to formalise the next stage of the proposed relationship and set out areas where co-operation can be expanded.
The plans stop short of Canadian membership of the European Union, but would represent a significant broadening of the relationship between Ottawa and Brussels at a time when both are seeking alternatives to reliance on the world’s two largest powers.
