EU and Canada seek deeper ties amid worsening global uncertainty

The European Union and Canada have launched what they described as an Alliance for the Future, as Ottawa prepares to become the bloc’s first so-called “associate member”.

Prime Minister Mark Carney hosted the Canada-EU summit in Montreal and signed a digital trade deal, alongside other agreements. Also at the Friday summit were European Commission President Ursula von der Leyen and European Council President Antonio Costa.

The term “associate member” has no legal basis and is contested by some EU states. However, its use underscores the desire of Canada and the EU to forge closer relations, as United States President Donald Trump continues to threaten Washington’s traditional allies with trade tariffs if they do not play by his rules.

“Canada and the EU are working to establish the closest possible partnership, which will be far from full membership, but which will make Canada the first associate member of the European Union,” Carney posted on X.

“Today in Montreal, we have taken a major step forward by establishing more than twenty measures that will increase affordability, create opportunities and ensure our sovereignty on both sides of the Atlantic.”

In a joint statement following the summit, the two sides announced an agreement under which the European Investment Bank will invest in critical Canadian resources, particularly raw minerals. They also said they would advance cooperation on artificial intelligence security and safety.

“A more dangerous and divided world has fundamentally changed the requirements of sovereignty. It is no longer enough for nations to feed, fuel and defend ourselves,” the statement said.

It added that “true sovereignty” requires secure access to critical minerals, semiconductors, payment systems, energy, vaccines, space-based communications and AI.

Ukraine was also on the meeting agenda, with Carney announcing Canada’s participation in the EU’s 90 billion euro ($103bn) support loan for Kyiv. Carney said Canada would make an initial contribution of 500 million euros ($558m).

Opportunities for students in Canada and the EU were also discussed. Both sides said they would launch negotiations aimed at deepening Ottawa’s participation in Erasmus+, the EU’s flagship student exchange programme.

Carney and Trump are currently engaged in a trade dispute, with talks under way to reach a deal between the two countries.