Shaping a new strategy between the EU and Canada.

Against a backdrop of increasing strategic competition and volatile transatlantic relations, the EU and Canada are seeking to create another pillar of cooperation to enhance their resilience to shocks and their strategic autonomy.

The signal of strengthening the strategic relationship between the EU and Canada came after European Commission President Ursula von der Leyen declared that the EU wants to build a “union for the future” with Canada, beyond the framework of the Comprehensive Economic and Trade Agreement (CETA). The EC leader also gave the “green light” for Canada to become the EU’s first “associate member”.

Responding to signals from the EU, Canadian Prime Minister Mark Carney said he is pushing to upgrade relations with the EU towards building a unique union that goes beyond trade relations, as Ottawa seeks to strengthen its ties with Europe. Ottawa affirmed that it has no intention of becoming a full member of the EU, but is considering a new cooperation framework, which could potentially make Canada the EU's first associate member.

The foundation of the EU-Canada relationship has been built over a long period. CETA, implemented provisionally since 2017, has significantly boosted bilateral trade. However, in the context of a volatile global situation, with economies racing to secure strategic mineral resources and maintain production during crises, the relationship between the two sides has undergone significant adjustments.

One of the most important drivers of building a new partnership is the complementarity of resources. Canada possesses vast resources, including many minerals crucial to the defense industry, energy transition, and high technology. The EU, on the other hand, needs to diversify its supply sources, and both sides are aiming for increasingly close cooperation to address growing pressure and competition.

If minerals are the material input, then technology could become the glue that binds EU-Canada relations together in the long term. The two sides signed a Digital Partnership agreement in 2023, with areas of cooperation including artificial intelligence (AI), semiconductors, quantum technology, cybersecurity, data governance, and research.

The EU-Canada Digital Partnership Council has identified AI, e-wallets, secure international connectivity, and online safety as priority areas for cooperation. This strongly reinforces the idea that technological cooperation is not only about promoting trade but also about technological sovereignty . The EU wants to reduce its dependence on technology that could become a security risk, and Canada also benefits from expanding its technology and research networks.

Canada and the EU are preparing for talks in Montreal at the end of October, hoping to finalize the EC President's proposal to elevate bilateral relations to the "highest possible level." The plan includes announcing a series of agreements aimed at deepening cooperation in areas such as digital trade, critical minerals, energy, technology, and wildfire response.

The two sides are expected to sign a digital trade agreement, increase cooperation between competition authorities, and allow the European Investment Bank (EIB) to invest in key Canadian mineral projects. The EU and Canada have identified potential for cooperation on diversified and reliable energy supply chains, including LNG, renewable energy, low-carbon hydrogen, and clean technologies.

With their complementary strengths, effective coordination will help the EU-Canada relationship transcend the framework of a free trade agreement and become one of the most notable cooperative structures in the transatlantic space.