EU-Canada summit: Agreements to strengthen strategic partnership in facing international challenges

By Asmaa Ridan (Report) Brussels, October 30 (KUNA) -- The European Union and Canada are holding their 21st summit today, Friday, in the Canadian city of Montreal to discuss ways to strengthen their strategic partnership, as both sides seek to diversify their economic relations and supply sources and reduce dependence on the United States and China amid escalating trade tensions and international competition. The summit comes amid rapid shifts in international relations, following the return of US President Donald Trump to the White House, which has triggered trade and political tensions with Washington’s traditional allies, including the imposition of tariffs on Canadian and European exports, as well as his repeated threats to make Canada the 51st US state and to impose additional tariffs on the EU in light of its rapprochement with Ottawa.

The talks are expected to focus on enhancing cooperation in trade, investment, energy, critical minerals, artificial intelligence, defense industries, scientific research, financial services, as well as Arctic security, technology, and innovation. Critical minerals top the cooperation agenda due to their importance in industries linked to the green transition, particularly batteries and wind turbines, given that the EU relies heavily on China to secure its needs in this area, while Canada holds abundant reserves of these resources but requires significant investments to develop its mining sector and related infrastructure.

Both sides are expected to announce an agreement enabling the European Investment Bank to support critical minerals projects in Canada, thereby contributing to the enhancement of European supply security and stimulating investment in Canada’s mining sector. Artificial intelligence also constitutes a central theme of the summit, as both parties seek to bolster their competitive capabilities in the face of the United States and China.

European Commission President Ursula von der Leyen announced that the EU would open its high-performance computing infrastructure to researchers, startups, and Canadian industries. She stated that the increasing reliance of key industries and services on these technologies makes concentrating access in the hands of a limited number of major corporations a definite risk, emphasizing that EU-Canada cooperation aims to reduce such dependence and enhance joint capabilities.

On the other side, Canadian Prime Minister Mark Carney said that recognizing shared values and the ability to work together have never been more important, noting that the EU and Canada are facing a “breakdown in the global order.” In this context, the Canadian side announced a CAD 1.6 billion investment in the Canadian AI company Cohere, which has formed a partnership with the German company Aleph Alpha. Carney described this collaboration as a model of what the EU-Canada partnership can achieve, affirming that both sides will not wait for others to determine the future of artificial intelligence on their behalf.

An agreement on digital trade is also expected to be announced, aiming to facilitate electronic transactions and reduce their costs. Additionally, Canada’s participation in EU initiatives such as the Erasmus student exchange program and the Galileo satellite navigation system, which serves as a European alternative to the US Global Positioning System (GPS), will be discussed.

These steps are based on the Comprehensive Economic and Trade Agreement between the two sides, which entered into force in 2017 and eliminates tariffs on up to 99 percent of traded goods, as well as an agreement allowing Canadian companies to participate in defense procurement funded under the European Security Programme (CIPS), valued at 150 billion euros. At the same time, both sides are seeking to establish a new framework for their relationship, following the proposal put forward last September by von der Leyen to grant Canada “associate member” status in the European Union, enabling a deeper connection than a traditional partnership without achieving full membership. Carney welcomed the proposal, affirming that his country does not seek to join the EU but rather to build a “unique alliance” that strengthens shared interests. Von der Leyen said both sides aim to elevate their relationship to the highest possible level. However, the proposal raised reservations within the EU, as Germany and several member states opposed the use of the term “associate member,” citing the lack of a legal basis for it in EU treaties. The two sides agreed to exclude it from the joint summit declaration, while committing to work toward establishing a “closer relationship” and outlining the contours of their future ties before next year’s summit.

Efforts to draw the EU and Canada closer have drawn sharp criticism from US President Donald Trump, who described the associate membership idea as “laughable” and “hostile” toward the United States, while hinting at additional tariffs on the EU. In an attempt to allay American concerns, Carney stressed yesterday that diversifying Canada’s economic and trade relations does not conflict with US interests, noting that Washington could also benefit from this direction. The summit reflects a shared direction in Brussels and Ottawa to expand cooperation beyond traditional trade into technology, energy, defense, and strategic resources, enhancing their capacity to confront global economic disruptions and fluctuations in international relations. (End) ARN / T.M.A