MONTREAL, CANADA / EuroWire.IO / – The European Union and Canada launched a new strategic alliance at the end of their 21st summit in Montreal on Friday. European Council President António Costa described it as the bloc’s closest partnership with a non-European country. Prime Minister Mark Carney hosted the two-day summit with Costa and European Commission President Ursula von der Leyen from October 29 to 30. The leaders named the partnership the Alliance for the Future.
Canada announced its intention to participate in the EU’s €90 billion Ukraine Support Loan. The agreements also include closer cooperation on critical minerals and an artificial intelligence partnership aimed at developing safe AI systems. They cover digital trade, Canada’s future participation in the Erasmus+ youth programme and the Galileo satellite navigation system. The two sides also agreed to align climate policies and strengthen institutional coordination. Canada already takes part in an EU loan programme for joint defence procurement.
According to the Prime Minister’s Office, the alliance will draw on the strategic capabilities of Canada, the EU and like-minded nations. Leaders announced more than 20 new measures during the summit. They also launched an inaugural Canada-EU Business Forum. The EU is Canada’s second-largest trading partner, with goods and services trade worth about C$178 billion in 2025. Two-way trade grew 80% between 2016 and 2025.
Critical minerals and supercomputing deals
Canada signed a treaty framework with the European Investment Bank allowing it to invest in Canadian critical minerals projects. Those projects will supply materials needed for defence and the energy transition. The two sides are also launching work toward a raw materials stockpiling and investment framework. EU imports of critical raw materials from Canada rose 62% between 2024 and 2025, according to EU figures. The deals add to growing trade ties with the EU.
Canada has joined the European High Performance Computing Joint Undertaking. The move gives Canadian researchers and businesses access to JUPITER, one of the world’s most powerful supercomputers, to train AI models. The partners also concluded a Canada-EU Digital Trade Agreement, Canada’s first dedicated entirely to digital trade. Canadian firms exported nearly C$15 billion in digitally deliverable services to the EU in 2024, according to Trade Minister Maninder Sidhu.
Associate membership debate continues
The Prime Minister’s Office said Canada would become the EU’s first associate member, with its substance and scope to be set in the coming months. Von der Leyen used the term at the closing press conference and called the idea uncharted territory. However, the term was removed from the final summit declaration after objections from Germany, according to German news agency dpa. A concept for closer ties without full membership is to be developed by the next summit in 2027.
Canada will also launch negotiations to join the next Horizon Europe research programme and cooperate on the EU’s IRIS² satellite system. The partners will study increased Canadian liquefied natural gas exports to Europe. Canada became the first non-European country to join the EU’s Security Action for Europe defence initiative in February 2026. Carney has pursued closer European ties since his address to the European Parliament in September.