Carney thumbs down Trump, Canada and EU sign historic defense pact as US rattles allies

In a landmark move reflecting deepening global uncertainty, Canada and the European Union have signed a security and defense partnership, the first of its kind between the EU and a country in the Americas. The agreement, unveiled at a Brussels summit on June 23, 2025, signals a strategic pivot for Canada as it seeks to reduce its reliance on the United States amid President Donald Trump’s increasingly adversarial stance toward traditional allies.

Canadian Prime Minister Mark Carney stated:, “This partnership is fundamental to the future of Canada. It shows the world a way forward - toward deeper, more practical cooperation among democracies in an era of rising threats.”

The new partnership comes as both Canada and the EU face mounting geopolitical threats: a more unpredictable U.S. under Trump, Russia’s ongoing war in Ukraine, and instability in the Middle East. Trump’s recent threats - including talk of annexing Canada - have accelerated Ottawa’s efforts to diversify its security relationships and lessen its dependence on American defense guarantees.

However, the agreement is not yet fully in force. It still requires ratification by national parliaments in 10 EU member states—including Belgium, France, Italy, and Poland—meaning that key elements of the deal remain pending. The security pact is modeled on the agreement the EU signed with British Prime Minister Keir Starmer last month, and the bloc already has similar arrangements with six other countries, including Norway and Japan.

What’s in the Canada-EU security and defense pact?

Key features of the agreement:

• Joint Crisis Management: Canada and the EU will coordinate on crisis response, cybersecurity, maritime and space security, and arms control.
  
• Support for Ukraine: The pact reaffirms both parties’ commitment to supporting Ukraine as it continues to resist Russian aggression.
  
• Defense Industry Access: Canadian companies will gain access to the EU’s €150 billion ($172 billion) SAFE joint defense procurement program, part of the ReArm Europe initiative—boosting Canada’s defense industry and meeting NATO obligations.
  
• Annual Security Dialogue: Top officials from both sides will meet annually to review and deepen cooperation.
  
• Digital and AI Cooperation: The summit also launched talks on a digital agreement to harmonize standards for data, e-signatures, consumer protection, and AI governance—areas where the U.S. has often clashed with EU regulatory approaches.
  

Strategic and economic implications

• Diversifying Defense: For Canada, the pact marks a historic shift from its decades-long reliance on the U.S. for security. The EU, for its part, gains a trusted partner with vast natural resources and a stable rule-of-law environment, crucial for Europe’s re-industrialization and energy transition.
  
• Industrial Opportunities: The deal opens the door for Canadian firms to participate in Europe’s defense supply chains and digital markets, potentially transforming Canada’s defense industrial base.
  
• Resilience Against U.S. Policy Swings: Both sides see the agreement as insurance against future U.S. unpredictability, aiming to build a more resilient transatlantic security architecture.