At the Canada-European Union (EU) Summit, Prime Minister Carney announced the new Canada-EU Alliance for the Future. Together, Canada and the EU are leveraging our strategic capabilities in critical minerals, energy, defence, advanced technologies, and financial services todeliver more choice and lower costs for families, new export markets for businesses, and greater opportunities for young people to live, work, and study where they want – in Canada or the EU.
Affordability
Finalisation of negotiations on the Canada-EU Competition Cooperation Agreement
Partner: EU
Canada and the EU have concluded negotiations on an updated Competition Cooperation Agreement to strengthen cooperation between their competition authorities. The agreement will help Canadian and European authorities work together to investigate business practices that may limit competition in both markets, while sharing information in line with applicable legal safeguards. Stronger cooperation will help authorities address cross-border conduct more effectively and support fair competition, giving businesses a more level playing field and helping protect consumers.
Payment systems connection
Partners: Eurosystem, Bank of Canada, and Payments Canada
Canada and the EU intend to support work by the Eurosystem, the Bank of Canada, and Payments Canada toward connecting our instant payment systems for near-real-time cross-border payments. Interlinking Canada’s planned Real-Time Rail with the EU’s TARGET Instant Payment Settlement (TIPS) system would allow people and businesses to send money between Canada and the EU more quickly and at a lower cost than traditional international transfers.
Cross-border capital flows and financial services
Partners: EU countries, Canadian provinces and territories, and EU and Canadian financial sector regulators and supervisors
Canada and the EU will launch a joint working group after the Summit, dedicated to exploring ways to further deepen the ties between our financial sectors, increase cross-border capital flows, and improve opportunities for consumers, banks, insurers, and fintechs. This will help mobilise capital for strategic sectors and make it easier for financial service providers to offer services in each other’s markets. By reducing barriers between our markets, we will encourage competition and reduce costs for consumers, while maintaining strong regulatory oversight and financial stability.
Opportunity
Expanded participation in the Erasmus+ program and enhanced youth mobility
Partner: EU
Canada has begun negotiations to deepen its participation in Erasmus+, the EU’s program supporting education, training, youth, and sport. It will also explore a next-generation youth mobility partnership that will further enable young Canadians and Europeans to access opportunities on both sides of the Atlantic. Together, these will create more opportunities for Canadian students, educators, training institutions, and youth organisations to collaborate with European counterparts through international exchanges, joint learning activities, and institutional partnerships. This cooperation will help Canadians gain international experience, develop new skills, and build lasting connections with European peers, while strengthening collaboration between Canadian and European education and training institutions.
Canadian membership in the European High Performance Computing Joint Undertaking
Partner: European High Performance Computing Joint Undertaking
Canada is deepening cooperation with the EU on high-performance computing by joining the European High Performance Computing Joint Undertaking (EuroHPC JU). The initiative brings together participating countries and private-sector partners to pool resources to develop computing infrastructure – such as JUPITER, one of the world’s most powerful supercomputers – and fund research and innovation related to high-performance computing, artificial intelligence, and quantum technologies. Canada’s membership will create opportunities for Canadian researchers, universities, and businesses to collaborate with European partners, advance research in emerging technologies, and strengthen Canada’s access to international research and computing networks.
Canadian participation in the next Horizon Europe Program
Partner: EU
Canada and the EU will work toward Canada’s participation in the next Horizon Europe – the 10th Framework Programme (2028-2034), deepening collaborative research and innovation between Canada and Europe in areas of shared strategic interest, including semiconductors and dual-use and emerging technologies. Particular attention will be given to helping small and medium-sized enterprises, startups, and research institutions access relevant digital infrastructure, expertise, funding, and research opportunities.
Finalisation of negotiations on the Canada-EU Digital Trade Agreement
Partner: EU
Canada and the EU have concluded negotiations on the Canada-EU Digital Trade Agreement, strengthening the foundation for digital trade between two like-minded partners. The agreement will provide a modern, rules-based framework that supports innovation, enhances predictability for businesses operating across borders, and facilitates broader participation in the digital economy. It will support Canadian businesses, including small and medium-sized enterprises, pursue commercial opportunities in Europe’s digital market and contribute to economic growth and competitiveness.
Canada-EU host country agreement
Partner: EU
Canada and the European Union will sign a host country agreement to expand the privileges and immunities granted to the EU delegation and its officials in Canada, who play a vital role in strengthening the Canada-EU relationship. This will raise the treatment that Canada accords to the EU on par with what the EU grants its member states and what the Canadian Mission to the EU is granted.
Opening of Canadian Industry Office in Europe
Partner: EU
A Canadian Industry Office is to be established in Brussels at the initiative of a coalition of Canadian industries to strengthen relationships with European industry and key decision-makers. The initiative aims to support Canada-European Union Comprehensive Economic and Trade Agreement implementation and advance market access and trade diversification for Canadian sectors, including small and medium-sized enterprises.
Sovereignty
Military equipment to support allied defence capabilities
Partner: Galvion
Contract value: €27.8 million
Latvia is providing more than $44 million to Montréal-based company Galvion to supply ballistic helmet systems to Latvia as part of funding from the EU’s SAFE initiative. This contract highlights the close collaboration between Canada and Latvia, creating new opportunities for Canadian industry and strengthening the defence capabilities of our European allies. Canadian-made helmets produced by Galvion are trusted by many NATO Allies, reflecting their proven quality, performance, and reliability.
Increasing waterbomber production capacity
Partners: EU members
Financing: $2.5 billion
The Government of Canada intends to provide up to $2.5 billion in financing to Alberta-headquartered company De Havilland to help increase its current aerial firefighting aircraft production capacity. The financing, to be delivered by Export Development Canada, would support the expansion of Canadian aerospace manufacturing, strengthen domestic supply chains, and create opportunities for Canadian workers and suppliers. Expanding production capacity would help meet growing demand for these aircraft in Canada, the EU, and other countries – strengthening the ability of wildfire response agencies to respond to wildfires and protect communities. This complements the EU and EU member states’ March 2024 purchase of De Havilland DHC-515 waterbombers.
Secure satellite connectivity
Partner: EU
Canada intends to further explore engagement with the EU on secure satellite connectivity through an Administrative Arrangement that will provide a framework for dialogue and information sharing, including on developments related to IRIS² – a multi-orbit satellite network designed to provide secure and resilient connectivity for governments, defence, emergency services, critical infrastructure, and commercial users. Deeper cooperation with the EU on secure and reliable connectivity could help strengthen Canada’s resilience and support the security and prosperity of Canadians.
Partnership with the EU Galileo Program
Partners: EU and European Space Agency
Canada will formalise a geodetic partnership with the European Union’s Galileo High Accuracy Service, improving global positioning, navigation, and timing capabilities and expanding access to advanced positioning services across Canada, including the Arctic. By combining Canada’s Arctic geography with a unique European satellite positioning capability, this partnership delivers mutual benefits and demonstrates the growing strategic relationship between Canada and the European Union.
Treaty framework for cooperation
Partner: European Investment Bank
Canada and the European Investment Bank (EIB) are strengthening cooperation to support the development of secure, sustainable, and diversified critical minerals supply chains. As part of this, Canada and the EU have signed a treaty framework to allow the EIB to operate in Canada and potentially finance eligible projects across the critical minerals value chain, including exploration, mining, processing, and recycling. Building on the 28 deals signed under the Critical Minerals Production and Resilience Alliance between Canadian and European partners, this agreement will help create the certainty mining projects need. It will mobilise public and private investment to support responsible resource development and strengthen supply chains for the minerals needed for clean energy, advanced technologies, and defence. In 2025, the European Commission and EIB agreed on a nearly $7 billion external investment guarantee to expand EIB operations in partner countries, including to strengthen critical raw materials supply chains.
Canada-EU raw materials stockpiling and investment framework
Partner: EU
Canada and the EU are working to strengthen the resilience of critical mineral supply chains by exploring coordinated approaches to stockpiling and investment. Initial efforts will focus on joint value chain mapping for rare earth elements, permanent magnets, and batteries. By bringing together Canada’s resource base and the EU’s industrial and investment capabilities, this work will support responsible critical mineral production and processing, strengthen economic and national security, and create opportunities for businesses and workers on both sides of the Atlantic.
Market study on communications cables
Partner: EU
Canada intends to launch a market study to identify the most effective routes for communications cables, building on preliminary agreements to facilitate data exchange with European partners. Canada and the EU would work together to compare findings and assess the feasibility of a joint cable initiative. Improved communications links could strengthen secure, reliable connections between Canada and Europe, increase the resilience of international data networks, and support growing demand for connectivity driven by artificial intelligence, cloud computing, and other advanced digital technologies.
Joint study on feasibility of liquefied natural gas exports
Partner: EU
Canada and the European Commission will undertake a joint study to assess the feasibility of establishing liquefied natural gas exports to Europe. The study will examine relevant market conditions, infrastructure requirements, and other factors affecting the viability of increased exports. Its findings will help inform future decisions on energy trade and infrastructure investment, while supporting discussions on how Canadian natural gas can contribute to energy security and diversify supplies for European partners.
Canadian participation in Ukraine Support Loan
Partner: EU
Canada intends to participate in the EU’s €90 billion Ukraine Support Loan, which would allow Ukraine to purchase military equipment from Canadian defence companies using EU funds. This would help Ukraine meet its urgent defence needs, strengthen cooperation between Canada and the EU, and create opportunities for Canadian defence companies to supply military equipment.
CBSA-Frontex new arrangement
Partner: Frontex
The Canada Border Services Agency (CBSA) and Frontex, the European Border and Coast Guard Agency, will strengthen cooperation on border management and security through a new Working Arrangement on Operational Cooperation. Through this arrangement, the two organisations will deepen their operational cooperation and information exchanges related to cross-border issues, including criminal threats and migration, while maintaining strong privacy and data protection safeguards. Closer cooperation will help tackle migrant smuggling, human trafficking, and document and identity fraud.
Addressing Canada-EU bilateral trade issues
Partner: EU
Canada and the EU are deeply engaged in discussions on several bilateral trade issues, with a view to finding meaningful solutions to ensure that Canadian consumers, businesses, and investors can take full advantage of these opportunities. The three issues of concern for Canada that were identified for this accelerated work are the Carbon Border Adjustment Mechanism, the EU Deforestation Regulation, and proposed EU measures on pesticides. In turn, the EU identified Canada’s steel tariff-rate quota regime, Canada’s application of luxury tax on certain electric vehicles, and the Buy Canadian policy as priority trade issues of concern. Canada and the EU have engaged constructively and made progress in advancing discussions on these issues ahead of the Summit. The partners remain committed to ongoing joint work with the aim of maximising the benefits of our trading relationship.