Canada and EU bypass US in bold new defense deal ahead of NATO summit
Photo: Canadian Prime Minister Mark Carney (Getty Images)
The European Union and Canada will sign a partnership agreement in the field of security and defense. The summit will open a series of discussions on the possibilities of closer cooperation, according to Bloomberg.
Canadian Prime Minister Mark Carney arrived in Brussels late in the evening on Sunday, June 22. One of the goals of his government is Canada's participation in SAFE—the European military procurement fund amounting to 150 billion euros.
Joint arms procurement
According to Canadian officials, the agreement will pave the way for joint procurement of weapons by Canada and EU countries. This will make it possible to obtain ammunition faster and cheaper, as well as to pool resources for the purchase of expensive and complex defense systems.
The implementation of the plan will require additional negotiations. However, countries are already considering SAFE as a tool for rapid military cooperation.
Response to Trump’s aggressive actions
Carney came to power in April with promises to strengthen Canada's economic and foreign policy positions by establishing closer ties with allies beyond the United States. This was a response to the trade war launched by President Donald Trump and his threats to Canadian sovereignty.
The EU, in turn, also seeks to develop relations with other countries outside the transatlantic alliance, amid signals from Trump about a possible rollback of American involvement in the European security system.
New areas of cooperation
In May, the EU already concluded a similar agreement with the United Kingdom — five years after Brexit. This was part of the expansion of diplomatic efforts amid wars by Russia against Ukraine and in the Middle East.
Carney, who previously served as the head of the Bank of England, witnessed Brexit firsthand. On June 23, he will meet with European Commission President Ursula von der Leyen and European Council President Antonio Costa. They intend to publish a joint statement listing priority areas of cooperation for the coming years.
Digital trade and CETA modernization
Both sides will also begin negotiations on a digital trade agreement, according to a senior EU official. Trade in goods between Canada and the EU increased by 64%, reaching 76 billion euros last year after the provisional implementation of the CETA agreement in 2017.
According to Canadian representatives, the parties can improve the current agreement by clarifying norms of mutual recognition of standards and regulations.
Access to SAFE and defense spending plans
Canada's access to the SAFE initiative, the first part of the EU's 800 billion euro defense plan called ReArm, requires further treaty-level negotiations. This will allow Canadian companies to participate in SAFE projects and expand their markets.
Although Canada will not be able to receive EU loans directly, it will be able to enter into joint contracts with European states, officials said.
NATO summit and new defense targets
Carney and other world leaders will gather in The Hague on June 24 for a NATO summit, where they will discuss a new goal — increasing defense spending to 5% of GDP, compared to the current 2%.
Carney promised earlier in June that Canada would reach the 2% level already in the current financial year. Meanwhile, according to Bloomberg, Spain received an exemption from meeting this target.
