The European Union and Canada have formalized a defense agreement, marking a significant step toward enhanced military collaboration amidst strained relations with the United States.
This partnership, signed on Monday, reflects a growing trend among America’s allies to bolster military cooperation as the U.S. administration, under President Trump, has signaled a reduction in its international security commitments.
President Trump has urged NATO members, including Canada and EU nations, to increase their military expenditures, criticizing them for relying too heavily on U.S. support. His administration's stance has raised concerns about America's dedication to defending certain NATO allies and has sparked trade tensions with traditional partners.
In response to these dynamics, Canada, along with countries like Germany and France, is increasing military spending while simultaneously seeking to forge new alliances and reduce dependence on the U.S.
Ursula von der Leyen, the president of the European Commission, emphasized the strength of the partnership during a meeting in Brussels with Canadian Prime Minister Mark Carney, stating, “It is time to go to the next level, to step up the intensity of our partnership.” She described the new defense agreement as “the most comprehensive we’ve ever concluded.”
The agreement will enable Canada to access a substantial 150 billion euro ($173 billion) defense procurement initiative aimed at funding collaborative military projects within the EU. However, only 35 percent of the budget allocated for any project can be spent on weapons from non-participating countries.
Countries are increasingly forming defense agreements with the EU to gain full access to this program, with recent agreements signed by Britain and Australia. The United States does not have a similar agreement, limiting its defense contractors' participation in the EU's procurement initiatives.
For Prime Minister Carney, this agreement represents a significant achievement in his efforts to establish a new trade deal with the U.S. while also strengthening economic and strategic ties with other nations. It will enhance Canada’s defense sector by providing better access to EU contracts, which is crucial given that approximately half of Canada’s defense products are exported, primarily to the U.S.
The EU agreement underscores Canada’s intention to assert its independence from the U.S. and offers new economic opportunities for its defense industry. Carney remarked, “It’s crucial for Canada, but I also think it shows a way forward to the world.”
As Trump has frequently questioned Canada’s sovereignty, fostering closer relationships with foreign partners has become increasingly vital for the country. A recent poll indicated that nearly 50 percent of Canadians are interested in pursuing EU membership, an idea that EU officials have acknowledged as flattering but unfeasible.