OTTAWA — Canada and the European Union are preparing to announce an “all-encompassing” partnership spanning trade, defence, space and scientific research as both seek to reduce their vulnerability to pressure from the United States and China.European Commission President Ursula von der Leyen is expected to unveil the initiative during her state of the union address in Strasbourg, France, on September 16, according to Bloomberg. Prime Minister Mark Carney is expected to attend the address and speak to European lawmakers the following day.The proposed alliance would push Canada as close to the European Union as legally possible without seeking formal membership, people familiar with the discussions told the outlet.Officials are exploring closer access to the EU’s single market while determining what legal conditions and regulatory commitments Canada would have to accept in return.A Canadian official said the Carney government is examining “everything short of actual membership,” with particular attention being paid to shared strategic capabilities..Those discussions include deeper co-operation on defence procurement, space exploration, artificial intelligence, scientific research, energy, critical minerals and secure supply chains.It remains unclear whether new treaties or other legal mechanisms would be required to formalize the partnership. Ottawa is expected to consult provincial governments and Canadian industries as negotiations advance.The reported initiative follows the collapse of Canada’s latest trade negotiations with U.S. President Donald Trump and the introduction of new tariffs affecting Canadian products.Carney has increasingly argued that Canada must reduce its reliance on the United States and work with other middle powers as Washington and Beijing exert greater influence over global trade, technology and security.Canada and the EU already operate under the Comprehensive Economic and Trade Agreement, which has been provisionally applied since 2017.The two sides also signed a security and defence partnership in 2025.Canada later became the first country outside Europe to join the EU’s Security Action for Europe program, known as SAFE.The €150-billion military procurement fund — worth about C$240 billion — provides financing for joint defence purchases and is intended to strengthen European weapons production.Canada’s participation gives Canadian defence companies access to procurement opportunities associated with the program while allowing European countries to purchase equipment through projects involving Canadian suppliers.The European Parliament called earlier this year for the “closest possible defence cooperation” with Canada and encouraged deeper work on artificial intelligence, energy, climate policy and cybersecurity.The new partnership is being developed as an alliance of middle powers intended to offset global politics increasingly dominated by the United States and China.Canada and the EU are also scheduled to hold a summit in Canada on October 29 and 30, where further details and agreements could be finalized.
