EU and Canada Sign Security Pact as Carney Pivots From US

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(Bloomberg) — The European Union and Canada have signed a security partnership that moves them closer to cooperation on military purchases, as Prime Minister Mark Carney aims to reduce his country’s dependence on the US for defense.

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Canada sees the move as a first step toward participation in the 27-member bloc’s €150 billion ($173 billion) joint-purchase loan pool dubbed Security Action for Europe (SAFE), part of its proposed €800 billion ReArm Europe initiative. Access to SAFE still has to be negotiated and requires purchase-by-purchase agreements led by European partners.

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The security deal signed Monday says both sides will “explore possible mutual involvement” in each others’ defense initiatives.

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Carney is advancing a campaign pledge to pivot Canada away from its security reliance on the US, where it currently spends the vast majority of its defense dollars. President Donald Trump has imposed punishing tariffs and repeatedly said the country should be a 51st US state.

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The EU and Canada will try to improve interoperability of equipment and personnel, develop maritime security in areas including the Indo-Pacific and consider joint naval exercises, according to the agreement released after a summit in Brussels attended by Carney, European Commission President Ursula von der Leyen and European Council President Antonio Costa.

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The deal — which mentions “cyber” 13 times — also pledges to consider joint action against sources of foreign interference and share information on “emerging disruptive technologies,” including the governance of AI in defense.

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The EU is broadening its multilateral efforts after indications from Trump that he’ll pull back the US role in European security. The bloc also signed a security pact with the UK last month, five years since Brexit.

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In a separate joint statement, Canada and the EU also wrote that they “condemn threats to the independent functioning” of the International Criminal Court, “including measures against individual officials.” 

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Earlier in June, the Trump administration sanctioned four ICC judges for alleged “transgressions” against the US and Israel.

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The EU-Canada pact was signed one day before the North Atlantic Treaty Organization’s summit in The Hague, two hours’ drive north, where allies are expected to agree to ramp up defense and related spending to 5% of gross domestic product. NATO is “the foundation” of Canada and the EU NATO members’ collective defense, the security deal said. 

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The joint statement between Canada and the EU set out dozens of areas of cooperation, including:

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  • Sourcing of metals and minerals critical for defense, welcoming a Canadian nickel project announced under the EU’s Critical Raw Materials Act, and working on finding “opportunities for co-investment in projects of mutual interest”
  • Energy security
  • Aligning regulation and standards
  • Enhancing cross-border trade and investment
  • Providing continued support to Ukraine “for as long as it takes and as intensely as needed”
  • Increasing pressure on Russia
  • Calling for an immediate cease-fire in Gaza and the release of all hostages
  • Deep concern at “dangerous escalation following Israeli strikes on Iran, and Iran’s response” as well as agreeing Iran can’t have nuclear weapons

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—With assistance from Jorge Valero.

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