EU and Canada plan far-reaching alliance to strengthen partnership

The European Union and Canada are working toward a new, all-encompassing relationship that will range from trade to security, as the transatlantic partners seek to build a new alliance to offset the global power politics dominated by the US and China.

European Commission President Ursula von der Leyen, the top executive of the EU, is expected to announce the plans at her state of the union address in Strasbourg, France, September 16, according to people familiar with the preparations. Canadian Prime Minister Mark Carney will attend the speech then address European lawmakers the following day.

Carney’s government has made a deeper EU partnership a top priority and is actively looking at everything short of actual membership, said a Canadian official who spoke on the condition of anonymity. The discussions are particularly focused on “strategic capabilities," such as cooperation on defense, space exploration and scientific research.

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It’s not clear whether new legal tools would be needed to formalise this partnership, but those discussions are ongoing and Carney’s government will be consulting with Canadian provinces and industries, the official said.

In a remarkable speech at the World Economic Forum earlier this year, Carney warned that the “rules-based international order” was effectively dead and called on so-called middle powers to create a new global architecture to oppose pressure tactics and intimidation by the world’s great powers.

He didn’t mention US President Donald Trump by name, but called on new alliances to be the last line of defense against countries that impose their economic and military might at will.

A spokesperson from Carney’s office declined to comment for this story. A spokesperson from the commission didn’t immediately respond to a request for comment. The contents of von der Leyen’s speech next week are still being drafted and could change before then.

The arrangements will aim to cover all areas of the relationship, including trade, security, supply chains and critical raw materials, according to the people. The US and Canada have recently traded tit-for-tat tariffs, while Trump has repeatedly lambasted the EU’s trade policies and continues to signal interest in absorbing Greenland.

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Short of EU membership, the EU and Canada want to get as close as legally possible, one of the people said. The two sides have also discussed working together through the Trans-Pacific Partnership, a multi-country trade agreement of which Canada is a member.

Canada is the first country outside of the EU to join the EU’s €150 billion ($174 billion) military procurement fund last year.

The EU and Canada already have an ambitious trade agreement and a security and defense partnership. They’ve been exploring ways to deepen the relationship within the contours of what’s legally feasible as well as striking a balance between access to the bloc’s single market and the strings that come with that without full membership.

The two parties are scheduled to hold a summit in Canada in October.

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