Canada is preparing to host a high-level summit with the European Union in Montreal to strengthen bilateral strategic and economic ties as its relationship with the United States deteriorates. Scheduled for October 29 to 30, the 21st Canada-EU summit will focus on deepening cooperation across trade, technology, defence, energy, critical minerals, artificial intelligence, research, and financial services.
Building on Past Agreements and New Alliances
The upcoming meeting builds upon the Comprehensive Economic and Trade Agreement (CETA), which took effect in 2017 and eliminated duties on up to 99 percent of imported goods between the two regions, according to the European Council. European Council President Antonio Costa stated that the meeting aims to take the partnership to the next stage by launching an “Alliance for the Future” to deepen political, economic, and institutional ties, with a joint statement expected from leaders.
The tightening alignment between Canada and the EU follows policies from US President Donald Trump, who imposed substantial tariffs on exports from both Canada and Europe. In August, trade negotiations between Ottawa and Washington broke down when Trump levied a 50 percent tariff on $20bn of Canadian goods, prompting Canada to retaliate with equivalent tariffs on US steel, dairy, appliances, farm equipment, pulp and paper, and electronics. Before these trade disputes, Canada directed nearly 80 percent of its exports to the US market.
Both sides are looking to expand their options beyond the world’s largest economy. Prime Minister Mark Carney’s office stated that the EU offers market power, research depth, and manufacturing strength, while Canada contributes abundant energy, critical minerals, space and quantum capabilities, artificial intelligence, and a leading banking system. Vina Nadjibulla, co-founder and CEO of the Centre for Strategic Statecraft in Ottawa, told Al Jazeera that these sectors will likely yield specific announcements, though the main challenge lies in translating political momentum into tangible economic results quickly.
Additionally, the EU classifies Canada as the sole non-European participant in Security Action for Europe (SAFE), a 150 billion-euro ($167bn) loan program supporting defence procurement by EU member states. Finalised in February, the agreement grants Canadian firms preferential access to defence procurements funded through the SAFE Instrument.
Associate Membership and Geopolitical Reactions
In September, European Commission President Ursula von der Leyen proposed opening discussions for Canada to become the EU’s first “associate member,” a move welcomed by Carney as a unique alliance rather than standard membership. The Centre for European Policy Studies noted that the term does not currently exist within standard EU enlargement frameworks or treaties, though Nadjibulla emphasized that practical collaboration matters more than the specific title.
While von der Leyen described the partnership during her State of the European Union address—which Carney attended as the first foreign head of government—as a measure for common strength rather than opposition to others, Trump has reacted critically. Trump warned reporters in Charlotte, North Carolina, in September that he would impose heavy tariffs on Europe if the associate membership proposal proved hostile to the US, dismissing Canada’s potential inclusion as laughable and labeling the country a terrible trade partner.
Bob Rae, former premier of Ontario and Canada’s ambassador to the United Nations from 2020 to 2025, told Al Jazeera that US leadership does not dictate Canadian policy. Rae stated that Canada has maintained long-standing relations with Europe for centuries, noting that Trump chose to treat Canada disrespectfully regarding its sovereignty and that normal diplomatic talks with the EU are not directed against the US.
