EU and Canada sign security pact as Carney pivots from U.S.
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(Bloomberg) — The European Union and Canada have signed a security partnership that moves them closer to cooperation on military purchases, as Prime Minister Mark Carney aims to reduce his country's dependence on the US for defense.
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Carney and EU leaders described the move as a first step toward participation in the 27-member bloc's €150 billion ($173 billion) joint-purchase loan pool dubbed Security Action for Europe (SAFE), part of its proposed €800 billion ReArm Europe initiative. Access to SAFE still has to be negotiated and requires purchase-by-purchase agreements led by European partners.
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At a news conference alongside Carney and European Council President Antonio Costa in Brussels, European Commission President Ursula von der Leyen said the EU and Canada would 'swiftly' launch talks on the North American nation accessing the financial instrument.
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Carney said in a 'world that's more dangerous and divided, a time where the rules-based global order is under threat, at a time when technological change is accelerating, we really have two choices.'
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'We can nostalgically look back and long for the old order to somehow return, or we can build a new one with purpose and partnership. And as the most European of the non-European countries, Canada looks first to the European Union to build a better world.'
Carney is advancing a campaign pledge to re-balance Canada away from its security reliance on the US, where it currently spends the vast majority of its defense dollars. President Donald Trump has imposed punishing tariffs and repeatedly said the country should be a 51st US state.
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The EU and Canada will try to improve interoperability of equipment and personnel, develop maritime security in areas including the Indo-Pacific and consider joint naval activities, according to the agreement released after a summit attended by Carney, von der Leyen and Costa.
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The deal — which mentions 'cyber' 13 times — also pledges to consider joint action against sources of foreign interference and share information on 'emerging disruptive technologies,' including the governance of AI in defense.
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The EU is broadening its multilateral efforts after indications from Trump that he'd pull back the US role in European security. The bloc also signed a security pact with the UK last month, five years since Brexit.
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Carney said Monday's announcement marked a 'new era of cooperation' that would see Canada and the bloc soon lanuch comprehensive negotiations to strengthen cooperation in a number of areas, including trade and economic security, the digital transition and climate change.
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