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EU and Canada preparing strategic alliance to counter US dominance

EU and Canada preparing strategic alliance to counter US dominance

The European Union and Canada are set to unveil a sweeping strategic partnership aimed at deepening trade, technology, and defence ties, Bloomberg reports. The initiative reflects a coordinated effort by “middle powers” to build an effective counterweight to mounting political and tariff pressure from Washington and Beijing. European Commission President Ursula von der Leyen will present the partnership proposal in her annual State of the Union address in Strasbourg on September 16. Canadian Prime Minister Mark Carney will attend the session and speak to European lawmakers the following day to underscore Ottawa’s push for close integration with the EU short of formal membership.

The proposed pact covers protection of critical supply chains, access to raw materials, space cooperation, and joint scientific research. A particular focus is collective security: the alliance would expand last year’s decision that made Canada the first non‑EU country eligible to participate in a €150 billion ($174 billion) European military procurement fund.

The diplomatic rapprochement is a practical response to what officials describe as a systemic crisis in international institutions. The rules‑based order has effectively ceased to function, Carney warned at the World Economic Forum. Building on the existing CETA free‑trade framework and security arrangements, Brussels and Ottawa are exploring mechanisms for partial legal integration of the Canadian economy into the single European market, with leaders hoping to lock in key agreements at a bilateral summit in Canada in October.

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