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EU and Canada Move Towards a Deeper Alliance as Trump’s Policies Reshape Global Relations

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The European Union and Canada are preparing to establish a closer political and economic alliance as growing tensions with the United States under President Donald Trump push both sides to strengthen ties with other international partners.

The two sides are expected to use Friday’s EU–Canada summit in Montréal, Quebec, to expand cooperation across trade, investment, energy, technology, security and climate policy. Discussions will also focus on critical raw materials, artificial intelligence, Arctic security and Canada’s closer participation in European Union programmes.

EU and Canada Move Towards a Deeper Alliance as Trump's Policies Reshape Global Relations

The proposed partnership marks a significant shift in relations between Brussels and Ottawa. Although the EU and Canada have maintained friendly relations for decades, Trump’s return to the White House has given both sides stronger reasons to work together and reduce their exposure to political and economic pressure from Washington.

European Commission President Ursula von der Leyen made the case for a closer relationship during a speech at the C.D. Howe Institute in Montréal, where she described Canada and the European Union as complementary partners with considerable opportunities to deepen their cooperation.

“It has become clear that there’s much more that we can do together,” von der Leyen said.

Her remarks reflect a growing recognition in Europe that Canada could become one of its most important partners outside the continent. The relationship is also gaining importance for Canada, which has traditionally depended heavily on the United States for trade, investment and economic cooperation.

Trump’s policies have unsettled that long-standing relationship. His administration’s tariffs on trading partners, repeated threats to annex Canada and confrontational approach to international cooperation have created uncertainty in a partnership that both countries once considered dependable.

For Canada, the prospect of becoming the 51st US state has been particularly damaging to relations with its southern neighbour. The remarks have challenged the traditional understanding of the relationship between the two countries and strengthened calls in Ottawa to diversify Canada’s international partnerships.

European governments have also become increasingly concerned about Washington’s approach to global affairs, particularly its position on Russia, its treatment of traditional allies and its willingness to challenge established international institutions. These developments have encouraged European leaders to look more seriously at partnerships with countries that share their interests in democratic cooperation, international trade and security.

The closer EU-Canada relationship has been developing through a series of high-level political engagements. Von der Leyen invited Canadian Prime Minister Mark Carney to attend her State of the Union address in September, where she proposed making Canada the European Union’s first associate member.

Carney subsequently addressed the European Parliament in Strasbourg, presenting his vision for an alliance based on shared economic interests, security and long-term cooperation.

Ahead of the Montréal summit, the Canadian prime minister said the partnership should be “strong enough so that no one can dictate our choices” and “open enough that others can join”.

The proposed alliance is intended to go beyond traditional diplomatic relations. Both sides want closer cooperation in strategic industries and greater coordination on issues that affect their economic and national security.

Trade and investment are central to the discussions. The EU wants to strengthen supply chains and secure access to critical raw materials, particularly minerals needed for its industrial and clean energy ambitions. Reducing dependence on China for important resources has become a growing priority for European policymakers.

Canada, which has significant natural resource exports, is looking to expand its role as a supplier to European markets. Liquefied natural gas is also expected to feature prominently in discussions as Europe continues to consider alternative energy sources and ways to improve the security of its energy supply.

Technology and research will form another important part of the proposed cooperation. The EU and Canada are looking at closer Canadian participation in European programmes, including Horizon, which supports research and innovation, and Erasmus, the bloc’s education and student exchange programme.

Greater involvement in these initiatives could create additional opportunities for researchers, universities, students and institutions on both sides of the Atlantic. Cooperation on artificial intelligence and climate policy is also expected to form part of the wider partnership.

Security will be equally important, particularly as tensions surrounding the Arctic continue to attract international attention. The region has growing strategic importance because of its geographical position, natural resources and security implications. Closer coordination between Canada and European countries could strengthen their ability to respond to developments in the region.

Support for Ukraine is another major issue expected to feature in the summit discussions. The European Union wants Canada to contribute additional financial assistance as Ukraine faces a projected funding gap of approximately 70 billion euros in its 2027 budget.

Russia’s continued invasion has placed further pressure on Ukraine’s economy, while damage to infrastructure and disruptions to trade routes have increased the country’s financial needs.

The EU is prepared to cover approximately two-thirds of the projected shortfall, equivalent to around 46 billion euros, and is seeking contributions from other international partners to meet the remaining amount.

Canada is among the countries Brussels hopes will provide additional support. The EU’s position is that any new contribution should be separate from financial commitments already made. This means Canada’s participation in the bloc’s 90 billion euro support loan for Ukraine would not count towards the additional funding being sought.

The scale of the European delegation attending the Montréal summit reflects the importance Brussels attaches to the relationship. Von der Leyen is accompanied by European Council President António Costa, EU foreign policy chief Kaja Kallas and nine European Commissioners.

The proposed cooperation also extends beyond individual policy agreements. European officials want to establish closer institutional links between the two sides, involving governments, parliaments and courts.

Brussels is considering a joint meeting between the full European Commission and the Canadian cabinet next year. Such meetings are relatively rare and are generally reserved for partnerships considered particularly important to the EU.

However, the push for a closer association has already encountered political complications. Germany reportedly pressed for references to “associate membership” to be removed from the final joint declaration ahead of the summit.

The disagreement is significant because Germany had previously introduced the idea of associate EU membership in discussions concerning Ukraine. Despite differing views among European governments about how such an arrangement should work, Berlin has continued to support the concept.

The final declaration is instead expected to refer to an “ever closer association”, avoiding a formal commitment to the associate membership label.

Von der Leyen has nevertheless maintained her support for a more ambitious arrangement with Canada. During her Montréal address, she described the proposal as an association without accession, suggesting that the two sides could develop a relationship resembling membership in several respects without Canada joining the EU as a full member.

“Our idea is simple: it is an association without accession. But we can replace accession with a common ambition and vision,” she said.

She added that the EU and Canada could build a partnership that comes closer to membership than any arrangement the bloc has previously established.

Carney also supported the proposal, describing the relationship as a new alliance for the future, with Canada as an associate member.

The discussions in Montréal therefore represent more than an effort to strengthen trade and diplomatic relations. They reflect a wider reassessment of international partnerships as both Canada and Europe respond to an increasingly unpredictable relationship with the United States.

While the exact institutional shape of the proposed association remains under discussion, the direction of travel is clear: Brussels and Ottawa want a partnership that gives them greater economic flexibility, stronger security cooperation and more influence in a changing international environment.