EU and Canada forge 'alliance for the future' at Montreal summit

The European Union and Canada are forging an "alliance for the future" as geopolitical tensions and strained relations with the US push them closer together, the two sides said on Friday at the end of a two-day summit in Montreal. 

Both sides launched numerous new projects intended to reduce their dependence on major powers such as China and the US for artificial intelligence (AI) and critical raw materials. They also hope this will strengthen their own influence in international politics.

The connection between the European Union and Canada will be the closest, deepest and most unique there is, European Council President António Costa said at summit talks with Canadian Prime Minister Mark Carney.

German Chancellor Friedrich Merz wrote from his ongoing trip to Asia: "Today we - the European Union and Canada - are beginning a new chapter in our relations."

According to the two sides, the unprecedented initiative will cover all aspects of the partnership: security and defence, growth and jobs, sustainable development and interpersonal contacts.

Merz made clear with his statement, however, that he again rejects the term "associate membership" for the deeper partnership, while European Commission President Ursula von der Leyen wants to use that term to describe the new relations with Canada.

On the sidelines of the summit, she was optimistic that Canada could still become the first associate member of the European Union. It would be an association without accession, she stressed. This would also include closer coordination of policy measures and administrative structures, and enabling exchanges between parliaments and courts, she added.

Energy and critical raw materials

The EU and Canada want to work more closely on energy security, for example through a feasibility study on liquefied natural gas (LNG) exports to Europe.

The nuclear cooperation agreement between Canada and the European Atomic Energy Community (Euratom) is also to be modernized.

The partners want to make it easier for European investment to fund the development of Canadian raw material deposits. This particularly concerns critical raw materials such as rare earths, which are important for electric vehicle motors, semiconductors, batteries, clean technology and the defence industry. According to EU figures, imports of such critical raw materials from Canada rose 62% between 2024 and 2025.

Trade and digital

The EU and Canada want to reduce trade barriers, promote investment and secure reliable supplies of important goods. A new digital trade agreement is to make cross-border business easier.

Two-way trade in goods and services grew 80% between 2016 and 2025. Canada is currently most closely tied to the EU through the Comprehensive Economic and Trade Agreement (CETA). It has been provisionally applied since 2017 but has still not entered into force in full because some EU member states have not ratified it.

The EU is Canada's second-largest trading partner.

Artificial intelligence

Both sides want to work more closely on AI regulation and security.

Canada and the EU also want to make it easier for each other to access their digital markets, including cloud and AI services and the related infrastructure.

Canada is also to be integrated into the EU's high-performance computing infrastructure.

Science and research

Canada is to be more closely involved in the Erasmus+ programme. In addition, obstacles for skilled workers and researchers are to be reduced and professional qualifications recognized more easily.

Security, Ukraine and the Middle East

Plans include more cooperation on defence, cyberdefence and the protection of critical infrastructure.

Both sides reaffirmed their support for Ukraine. Canada already takes part in an EU loan programme for joint defence procurement and is also to contribute to the EU support loan for Ukraine, which is under attack from Russia.

Closer ties with the EU

By the next summit in 2027, a concept for closer ties is to be developed, without full membership. Regular meetings are to help the two sides better represent their shared interests externally.

Dispute over two words

It remains unclear for now what will become of the term "associate membership." It was removed from the final summit declaration.

However, speaking at the closing press conference of the summit in Montreal, von der Leyen again used the term, saying she had discussed her proposal with Carney.

She argued that although a country outside Europe could not join the European Union, the concept of accession could be replaced by a shared ambition and vision. The idea of associate membership would be uncharted territory, she said, but both sides had the ambition, trust and creativity to shape it together.

Asked about Germany's opposition to the term, von der Leyen did not directly address the disagreement. Instead, she pointed to broad support among EU member states and in the European Parliament for bringing Canada closer to the bloc.

From the German government's point of view, the term should have been discussed with EU member states before being used, partly because it is already being used in connection with Ukraine's EU accession process at Chancellor Merz's initiative. Supporters, however, are counting on EU member states being won round over time.

The US is likely to watch the rapprochement with great interest. US President Donald Trump had called the push for associate EU membership for Canada ridiculous. 

He threatened consequences should the rapprochement harm US interests as a "hostile act." He would then impose high tariffs or halt trade with Europe in many areas, he warned.