Bloomberg: EU-Canada defence pact set to reshape transatlantic security cooperation

The European Union is accelerating efforts to deepen defence ties with key Group of Seven allies as President Donald Trump reduces the US commitment to European security.

According to sources familiar with the discussions, quoted by Bloomberg, the EU aims to finalise a defence and security partnership with Canada this month. This agreement would enable Canadian companies to access a newly established EU defence fund designed to modernise the bloc’s defence industry.

In addition, the EU plans to hold a summit with Japan in July to strengthen an existing security agreement, the sources said, speaking anonymously. These moves reflect the EU’s strategy to diversify its defence relationships amid disruptions to the European security framework caused by Trump’s policies. During his first term, Trump threatened to withdraw from NATO and suggested last year that Russia could act freely against allies who fail to meet defence spending targets.

The perceived US retreat has prompted the EU to mobilise hundreds of billions of euros toward increasing its defence capabilities.

The anticipated defence agreement with Canada is expected to be a highlight of the Brussels summit scheduled for June 23. This summit is intended to reaffirm the EU’s commitment to cooperation with like-minded allies during uncertain times. The planned pact follows a similar defence agreement the EU signed with the United Kingdom in May.

Like the UK deal, the agreement with Canada would be a step toward allowing Canadian firms partial participation in the EU’s new €150 billion ($171 billion) loan-based fund aimed at developing the European defence sector. While Canada seeks full access to the fund for its defence industry, the security pact only grants partial access; full access would require a separate bilateral agreement.

Canada, a long-standing EU security partner, is also involved in two other initiatives focused on enhancing defence collaboration among willing member states. These include efforts to improve military mobility and develop a network of logistics hubs across Europe.

The draft text of the Canada-EU agreement, still under negotiation, is expected to highlight shared interests, common threats, planned joint dialogues, and multiple cooperation areas, sources added.

Separately, the EU-Japan summit will look to expand the defence pact signed late last year by enhancing naval cooperation and other joint measures.

An EU spokesperson for European Council President Antonio Costa said the two upcoming summits aim to “further deepen the already very close relationship that we have with these two key partners.”

The EU has previously forged security and defence partnerships with countries including Albania, Japan, Moldova, North Macedonia, Norway, and South Korea, covering missions, training, and industrial cooperation.

Beyond defence, the EU is also working to strengthen ties with Canada and Japan through a competitiveness alliance. While discussions are more advanced with Japan, the alliance would consolidate existing bilateral initiatives related to economic security, supply chain resilience, and overall competitiveness. Negotiations continue on the specifics and structure of this framework, the sources said.

By Tamilla Hasanova