EU, Canada Sign Security Pact Ahead of NATO Talks
Canada and EU to launch formal defense and security partnership. Deal enables Canadian participation in EU's €150B SAFE military procurement fund.
The European Union and Canada are set to formalize a landmark defense and security pact on Monday, marking a strategic alignment just ahead of the NATO summit, as both sides seek deeper cooperation in the face of geopolitical uncertainty and shifting U.S. commitments.
Canada Eyes SAFE Defense Integration
Canadian Prime Minister Mark Carney arrived in Brussels Sunday night to attend the summit. One of his administration’s key goals is joining the EU’s €150 billion SAFE (Security Action for Europe) defense procurement initiative—part of the bloc’s broader €800 billion ReArm plan.
While Canada cannot directly tap EU loan funds, the deal will allow joint procurement with European states and access for Canadian defense contractors to bid on EU-funded projects.
Strategic Shift Beyond U.S. Reliance
The agreement comes amid growing unease in Europe about continued U.S. security commitments. With Trump indicating a U.S. pullback from NATO responsibilities, EU leaders have increasingly turned to non-U.S. allies for long-term defense planning.
Carney, who once served as Bank of England governor during Brexit, won Canada’s April election promising to reduce reliance on U.S. economic and defense ties. His tweet from Brussels read: “I’m in Brussels to launch a new era of partnership between Canada and the European Union—for the benefit of workers, businesses, and our security on both sides of the Atlantic.”
Broader Cooperation on Trade and Digital Standards
The security pact will be accompanied by new talks on a Canada-EU digital trade agreement. Trade in goods between the two partners surged 64% last year, reaching €76 billion under the provisional 2017 CETA trade deal.
Canadian and EU officials have also pledged to improve mutual recognition of standards and expand regulatory alignment.
NATO Summit to Push 5% Defense Spending Goal
On Tuesday, Carney will join other leaders in The Hague for the NATO summit, where allies are expected to debate raising the defense spending target from 2% to 5% of GDP. Carney has pledged Canada will meet the current 2% target in the ongoing fiscal year.