Canada is set to explore a new economic and security alliance with the European Union as it seeks to broaden its international partnerships amidst ongoing trade tensions with the United States, Prime Minister Mark Carney announced at the Canada Investment Summit in Toronto. The move aims to strengthen Canada’s economy and enhance its global investment appeal.
Speaking at the summit, Carney emphasized the importance of diversifying Canada’s international relationships and described the country as a stable investment destination. He stated that discussions with the EU would focus on deepening cooperation in key areas such as defense, critical minerals, artificial intelligence, energy, technology, and financial services. Canada, already the only non-European participant in the EU’s defense procurement initiative, hopes to build on its existing trade relationship with the EU.
The talks are part of a broader strategy to expand beyond the Comprehensive Economic and Trade Agreement (CETA), as both Canada and the EU express interest in enhancing cooperation in strategic sectors. This comes as Canada announced nearly C$500 billion in new investment commitments from pension funds, financial institutions, and other investors during the summit.
In addition to pursuing stronger ties with Europe, Canada introduced a new Productivity Mega Deduction to enable businesses to more quickly recover the costs of various investments. The Canadian government also unveiled plans to seek private investment through long-term concessions for the operation of the country’s four largest airports, while retaining ownership of the underlying assets.
Despite these initiatives to diversify partnerships, Carney acknowledged the continued importance of the United States as a key economic and strategic ally due to shared geographic and economic ties. As Canada and the EU work to define the parameters of their enhanced partnership, discussions will focus on strengthening trade, investment, security, and strategic supply chains.