Why Canada and EU forge strategic ties to reduce US dependence amid Trump threats: What is an ‘alliance for the future’ | Today’s news
Canada and the European Union are moving toward a closer strategic partnership as both seek to reduce their dependence on the United States amid rising trade tensions and geopolitical uncertainty under U.S. President Donald Trump.
At the EU-Canada Summit in Montreal on Thursday, Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen announced the launch of the “Alliance for the Future”, a partnership aimed at strengthening cooperation in critical minerals, defence, technology and resilient supply chains.
The initiative brings together more than 20 areas of cooperation, including artificial intelligence, energy, digital commerce, defense technology and connected instant payment systems. It is also intended to give both sides more room to react to economic shocks and external pressures.
The announcement comes as Trump’s threats of tariffs, repeated remarks about incorporating Canada into the United States and criticism from European allies have prompted governments on both sides of the Atlantic to reassess their economic and security dependence.
Why Canada and the EU are getting closer
The partnership reflects a growing recognition in Brussels and Ottawa that economic interdependence can also become a source of vulnerability.
Von der Leyen said that relationships that were once seen as guarantees of stability are increasingly being used as tools of coercion.
On the impact of trade disputes on ordinary households, she said: “When trade becomes an instrument of economic pressure, it is families who pay the price, from the supermarket shelf to the price of a new car.”
She added that sovereignty is increasingly under pressure, according to the Associated Press.
The alliance is designed to strengthen the ability of both partners to secure essential supplies, develop strategic industries and protect their economic interests. Critical minerals are a key priority given their importance to electric vehicles, batteries, semiconductors and defense manufacturing.
For Canada, closer ties with Europe could open up additional markets and investment opportunities, while reducing its exposure to trade disruptions involving its largest trading partner, the US.
For the EU, Canada offers access to natural resources, energy and a trusted partner in North America at a time when European governments seek to diversify supply chains and strengthen their defense capabilities.
“We need to reshape partnerships based on trust”
Von der Leyen said that the EU and Canada cannot remain limited by the assumptions of the existing international order.
“We can no longer be bound by the limits of the old world order. We must imagine partnerships that are built on trust and driven by shared interests and convictions,” she said.
Referring to Carney’s remarks about the changing global order, she added: “As Mark Carney said, the international order will also be built from Europe, with Canada as part of it.”
Carney said the partnership would help Canada withstand economic shocks and prevent foreign governments or tech companies from dictating its elections.
“In a dangerous and divided world, why does sovereignty matter? It allows us to withstand shocks. It allows us to live our lives as we choose,” he said.
Carney argued that the alliance was not intended to be an anti-American bloc. Instead, it is intended to expand Canada’s strategic options and strengthen its ability to make independent economic and political decisions.
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Could Canada become an associate member of the EU?
The summit also brought up again the proposal for Canada to become an associate member of the European Union.
Von der Leyen supported the idea, describing the proposed arrangement as “association without accession”. She said geographic considerations preclude Canada’s full membership of the EU, but both sides want to take their relationship to the highest possible level.
“Canada cannot become a full member of the EU because of geography, but we both want to take our relationship to the highest possible level. That is why we are discussing the idea of Canada becoming the first associate member of the European Union,” she said.
The proposal has raised questions within the bloc, with some EU members expressing reservations about the terminology and structure of such an arrangement.
Carney played down the name debate, saying the relationship was not a marketing exercise and that its substance mattered more than the label.
Defense cooperation and pressure for strategic autonomy
Defense is another important pillar of the emerging partnership.
Canada is the only non-European country participating in the EU’s €150 billion SAFE defense procurement program, which AP says is designed to promote joint procurement and strengthen Europe’s defense industrial base.
The proposed collaboration could create opportunities for closer cooperation in defense technology, manufacturing and supply chains, while helping both sides reduce the vulnerability of over-reliance on a single supplier or partner.
The broader alliance also reflects a shift in how Canada and European governments view their relationship.