Canada is set to explore a new security and economic partnership with the European Union, as Prime Minister Mark Carney announced during the Canada Investment Summit in Toronto. This move comes amid ongoing trade tensions with the United States, prompting Canada to diversify its international alliances.
Carney emphasized the importance of bolstering Canada’s domestic economy while expanding international cooperation, presenting the nation as a stable hub for global investment. The proposed alliance with the EU would extend beyond the existing Comprehensive Economic and Trade Agreement (CETA) to include collaboration in areas such as defense, critical minerals, artificial intelligence, energy, technology, and financial services. Notably, Canada is the only non-European country participating in the EU’s defense procurement initiative.
As part of the summit, Canada revealed nearly C$500 billion in new investment commitments, sourced from pension funds, financial institutions, and various investors. The government also introduced a new Productivity Mega Deduction, designed to accelerate business recovery of investment costs. Carney further outlined plans to attract private investment through long-term concessions for the operation of Canada’s four largest airports, while retaining federal ownership of the assets.
Despite the focus on strengthening ties with Europe, Carney acknowledged the enduring significance of Canada’s relationship with the United States, citing the geographic and economic links that underpin the partnership. Nevertheless, discussions with the EU aim to enhance trade, investment, security, and strategic supply chains, as both parties work to define the scope of their expanded partnership.