EU and Canada prepare sweeping alliance — from trade to defence

The European Union and Canada are preparing a new comprehensive partnership spanning trade, defence, security and supply chains. That's according to Bloomberg, citing its own sources, which report that Ottawa sees deepening ties with the EU as a priority, as both sides look to counterbalance a global power politics dominated by the US and China.

An announcement at the highest level

The plans for a new transatlantic alliance are expected to be unveiled by European Commission President Ursula von der Leyen in her annual State of the Union address to the European Parliament on 16 September. Canadian Prime Minister Mark Carney is set to attend the speech in person and will address MEPs himself the following day. In October, the two sides plan to hold a summit on Canadian soil.

According to a source in the Canadian government who spoke on condition of anonymity, Carney's cabinet is weighing virtually every possible avenue for closer ties with the EU short of outright membership in the bloc. Special attention in the talks is being given to "strategic opportunities" — cooperation in defence, space research and science. It remains unclear whether new legal mechanisms will be needed for the partnership: that question is still under discussion, and Canadian officials intend to consult both the provinces and various industries.

A response to Trump's pressure

Back in January, at the forum in Davos, Mark Carney declared that the rules-based international order was effectively dead, and urged smaller countries to build a new global architecture by banding together in the face of pressure from major powers. He did not mention US President Donald Trump directly — who has repeatedly called Canada the "51st state" of the US and referred to its prime minister as a "governor" — but Carney called for forming new alliances as a last line of defence against countries that arbitrarily wield their economic and military dominance.

A spokesperson for Carney's office declined to comment on the Bloomberg report, while the European Commission's press office did not respond to the agency's request. The content of von der Leyen's speech is still being finalised and could change before Wednesday.

What already links the EU and Canada

The EU and Canada already have a trade agreement in place, along with a security and defence partnership. The two sides are now exploring how to deepen these ties as far as legally possible, giving Canada access to the benefits of the EU single market — without full membership in the bloc. Cooperation within the framework of the Trans-Pacific Partnership, of which Canada is already a member, is also under discussion.

Against this backdrop, a sharp trade dispute continues between the US and Canada, with the two countries having traded retaliatory tariffs. Trump has also repeatedly criticised the EU's trade policy and openly stated his desire to annex Greenland to the United States.

Around Prague, based on reporting by seznamzpravy.cz