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the potential for scaling up European-Canadian defence cooperation

3/21/2025

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Europe and Canada have multiple avenues to rapidly scale up their defense cooperation, driven by converging strategic interests and complementary capabilities. The integration of Canada into the EU's ReArm initiative provides the most immediate opportunity, supported by concrete procurement projects and deeper industrial integration.
 
These efforts reflect a broader reconfiguration of transatlantic security relationships, as traditional U.S. allies deepen their ties independently of Washington in response to shifting American policies[4]. For both Europe and Canada, enhanced cooperation offers not only immediate security benefits but also long-term strategic resilience in an increasingly unpredictable global environment.
 
To move forward expeditiously, both sides should prioritize finalizing the legal framework for Canada's participation in the ReArm initiative, advancing specific procurement projects like fighter aircraft and submarines, and establishing deeper industrial partnerships that leverage Canada's resources and technological capabilities.
 ​
​ Scaling Up Europe-Canada Defense Cooperation: Opportunities for Rapid Enhancement
 
In the current geopolitical climate, characterized by shifting alliance dynamics and increasing global tensions, Canada is actively pursuing closer defense ties with Europe. This strategic pivot presents multiple avenues for rapid expansion of cooperation between European nations and Canada, creating mutually beneficial partnerships that could reshape transatlantic security arrangements.
 
 The Strategic Context for Enhanced Cooperation
 
Canada's relationship with the United States has become increasingly strained following Donald Trump's election as U.S. president. The Trump administration has launched sweeping tariffs against Canada and made threats of "economic force" that have deeply concerned Canadian leadership[6][9][10]. These tensions have accelerated Canada's interest in diversifying its defense partnerships, particularly with Europe.
 
Prime Minister Mark Carney, who took office on March 14, 2025, has signaled this shift by making his first overseas visits to Paris and London, where he described Canada as "the most European of non-European countries"[1][4]. This diplomatic positioning reflects a broader strategic realignment as Canada seeks to reduce its historical dependence on the United States for defense procurement and security partnerships.
 
Simultaneously, the European Union is advancing its own defense capabilities through initiatives like the ReArm defense plan, which aims to strengthen the EU's military industry and reduce dependence on American equipment[1][4]. This convergence of strategic interests creates an opportune moment for rapidly scaling up defense cooperation.
 
 Integration into the EU's ReArm Initiative
 
The most immediate pathway for enhanced cooperation lies in Canada's integration into the European Union's ReArm defense plan. Canada is currently engaged in advanced negotiations with the EU regarding participation in this initiative[3][4].
 
 Legal Framework Adjustments
 
For rapid integration, the EU needs to ensure its legislative texts allow third-party collaboration. Canada has specifically requested Italy's support in this regard, with Ambassador Elissa Golberg writing to Italian ministers seeking their assistance as "a matter of urgency"[2][5][6]. According to sources familiar with the negotiations, a Canada-EU defense partnership could be concluded quickly, making Canada eligible for joint procurement with European nations under the ReArm plan[2][5][6].
 
 Financial Structure Alignment
 
The ReArm program includes a proposed €150 billion (approximately $163 billion) loan program aimed at financing collaborative military development[4]. Under current negotiations, the program requires that 65% of component costs originate from within the EU or from partners engaged in specific agreements with the bloc[4][10]. Canada would supply the remaining 35%, with potential for further involvement if additional agreements are reached[4]. Finalizing these financial arrangements would enable rapid integration.
 
 Joint Procurement and Production Initiatives
 
Several concrete procurement opportunities could serve as immediate entry points for enhanced cooperation.
 
 Fighter Aircraft Collaboration
 
Canada is reviewing its purchase of F-35 fighter jets from U.S.-based Lockheed Martin, exploring European alternatives such as Sweden's Saab Gripen[9][10][12]. The Saab proposal includes assembly and maintenance in Canada, representing a model for future collaboration that combines European design with Canadian production capacity[9][10].
 
 Additional Major Defense Acquisitions
 
According to Ambassador Golberg's letter, Canada has plans "to purchase a number of key capabilities through major near-term procurement efforts," including as many as a dozen submarines, additional fighter jets, and battle tanks "that could potentially be acquired from European suppliers"[2][5][6][7]. These planned acquisitions provide immediate opportunities for cooperation.
 
 Technology Transfer and Manufacturing
 
The emerging defense partnership could enable Canada to contribute to the manufacturing of European fighter jets and various military hardware at its own production facilities[4]. This arrangement would benefit European partners by expanding production capacity while helping Canada develop its domestic defense industry.
 
 Defense Industry Integration
 
Beyond procurement, deeper industrial integration offers pathways for rapid cooperation enhancement.
 
 Critical Minerals Supply Chain
 
Canada possesses large reserves of critical minerals needed for advanced defense technologies and renewable energy systems, including nickel, cobalt, and lithium[5][6]. Integrating these resources into European defense supply chains would strengthen industrial cooperation and reduce dependencies on other global suppliers.
 
 Advanced Technology Sectors
 
Canadian industry has significant capabilities in drones, satellite communications, robotics, AI, and cybersecurity[6]. These align well with Europe's capability gaps identified in the EU White Paper, which highlights needs in areas such as cyberspace capabilities, strategic enablers, and critical infrastructure protection[8].
 
 Market Access and Regulatory Alignment
 
Streamlining market access would accelerate cooperation across multiple domains.
 
 Preferential Market Access
 
Under current negotiations, Canada would be granted preferential access to the EU market for military equipment, providing an alternative to procuring from the United States[1][4]. This would create immediate opportunities for Canadian manufacturers while diversifying Europe's supplier base.
 
 Regulatory Harmonization
 
Rapid regulatory alignment in defense standards and certification procedures would remove barriers to cooperation. The EU's ReArm plan emphasizes "facilitating greater collaboration and efficient scale for the European defense industry"[8], which could be extended to include Canadian partners through harmonized regulations.
 
 Conclusion
 
Europe and Canada have multiple avenues to rapidly scale up their defense cooperation, driven by converging strategic interests and complementary capabilities. The integration of Canada into the EU's ReArm initiative provides the most immediate opportunity, supported by concrete procurement projects and deeper industrial integration.
 
These efforts reflect a broader reconfiguration of transatlantic security relationships, as traditional U.S. allies deepen their ties independently of Washington in response to shifting American policies[4]. For both Europe and Canada, enhanced cooperation offers not only immediate security benefits but also long-term strategic resilience in an increasingly unpredictable global environment.
 
To move forward expeditiously, both sides should prioritize finalizing the legal framework for Canada's participation in the ReArm initiative, advancing specific procurement projects like fighter aircraft and submarines, and establishing deeper industrial partnerships that leverage Canada's resources and technological capabilities.
 
Sources
[1] Canada Negotiates Participation in Strengthening EU Defense ... https://mil.in.ua/en/news/canada-negotiates-participation-in-strengthening-eu-defense-industry/
[2] Canada seeks defence ties and deals with Europe as US pulls back https://theedgemalaysia.com/node/748600
[3] Facing Trump's threats, Canada shifts defense links away from US https://www.defensenews.com/global/the-americas/2025/03/20/facing-trumps-threats-canada-shifts-defense-links-away-from-us/
[4] Menaced by Trump, Canada Prepares to Join E.U. Military Industry ... https://www.nytimes.com/2025/03/19/world/canada/canada-eu-military-industry-trump.html
[5] Canada seeks defense ties with Europe - RBC-Ukraine https://newsukraine.rbc.ua/news/canada-seeks-defense-ties-with-europe-bloomberg-1742440569.html
[6] Canada Seeks Defense Ties and Deals With Europe as US Pulls Back https://financialpost.com/pmn/business-pmn/canada-seeks-defense-ties-and-deals-with-europe-as-us-pulls-back
[7] Canada seeks defence ties and deals with Europe as U.S. pulls back https://financialpost.com/news/canada-seeks-defense-ties-and-deals-with-europe-as-us-pulls-back
[8] [PDF] White Paper.pdf - Defence Industry and Space - European Union https://defence-industry-space.ec.europa.eu/document/download/30b50d2c-49aa-4250-9ca6-27a0347cf009_en?filename=White+Paper.pdf
[9] Canada in talks with the EU to reduce US defense reliance: AP source https://www.yahoo.com/news/canada-talks-eu-reduce-us-214608482.html
[10] Canada in talks with EU to reduce its US defence dependency https://trt.global/world/article/e89dff9d561b
[11] Europe's rearmament is moving fast – it must not overlook these ... https://theconversation.com/europes-rearmament-is-moving-fast-it-must-not-overlook-these-three-vital-areas-252558
[12] Canada in talks with the EU to reduce US defense reliance: AP source https://apnews.com/article/canada-defense-european-union-trump-f35-b2ced39c577c8dff6d3718007440db5c
[13] EU Defence White Paper: "Europe Must Go Further and… https://www.reneweuropegroup.eu/news/2025-03-19/eu-defence-white-paper-europe-must-go-further-and-faster-to-secure-its-defence
[14] Operation REASSURANCE - Canada.ca https://www.canada.ca/en/department-national-defence/services/operations/military-operations/current-operations/operation-reassurance.html
[15] White Paper for European Defence and the ReArm Europe Plan ... https://www.eeas.europa.eu/eeas/white-paper-european-defence-and-rearm-europe-planreadiness-2030-remarks-high-representativevice_en
[16] Minister Blair concludes productive visit to Europe and announces ... https://www.canada.ca/en/department-national-defence/news/2025/02/minister-blair-concludes-productive-visit-to-europe-and-announces-additional-support-for-ukraine-and-canadas-contribution-to-natos-eastern-flank.html
[17] Canada in talks with EU on defence procurement: Joly - YouTube https://www.youtube.com/watch?v=3qRmLjnH1Ek
[18] NATO to Ask Europe and Canada for 30% Boost in Military Capacity https://www.bloomberg.com/news/articles/2025-03-20/nato-to-ask-europe-and-canada-for-30-boost-in-military-capacity
[19] [PDF] A European Defence Union by 2025? Work in Progress - Sieps https://www.sieps.se/globalassets/publikationer/temasidor/european_defence_union_policy_overview.pdf
[20] Trump annexation talk prompted defence talks with Europe, Joly says https://www.ctvnews.ca/politics/article/trump-annexation-talk-prompted-defence-talks-with-europe-joly-says/
[21] Why Europe would consider inviting Canada into a defence pact https://www.cbc.ca/player/play/video/9.6688143
[22] [PDF] White Paper for European Defence – Readiness 2030 https://defence-industry-space.ec.europa.eu/document/download/3ce35bde-8519-416a-bc89-56a3681629ac_en?filename=WP+on+defence+-+factsheet+v23_0.pdf
[23] As Europe rearms, Canada has what it needs. That can be the basis of a post-NATO alliance https://www.cbc.ca/news/politics/canada-allies-europe-trump-1.7486978
[24] The EU must enable its defence industry to boost capabilities and ... https://www.chathamhouse.org/2025/03/eu-must-enable-its-defence-industry-boost-capabilities-and-reduce-dependence-us-systems
[25] Remarks HRVP and Commissioner Kubilius on White Paper and ReArm Europe Plan/Readiness 2030 https://ec.europa.eu/commission/presscorner/detail/fi/speech_25_834
[26] Why the EU could hang Canada out to dry https://www.euractiv.com/section/economy-jobs/news/why-the-eu-could-hang-canada-out-to-dry/
[27] [PDF] White paper for European defence - Readiness 2030 https://defence-industry-space.ec.europa.eu/eu-defence-industry/white-paper-future-european-defence-rearming-europe_en
[28] Canada Mulls Nixing F-35 Deal; EU To Ramp Up Defense Production https://www.investors.com/news/f-35-fighter-jet-canada-deal-european-union-eu-defense-production-ukraine-us/
[29] European Commission to pitch EU-wide mechanism to pool defence orders https://www.euronews.com/my-europe/2025/03/18/commission-to-propose-eu-wide-mechanism-to-pool-member-states-defence-orders
[30] EU slams the door on US in colossal defense plan - Politico.eu https://www.politico.eu/article/eu-freeze-us-multi-billion-defense-plan-arm-makers/
[31] How Trump's threats have driven Canada towards joining defence ... https://www.youtube.com/watch?v=25zS11N26w8
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Om säkerhet och samarbete i Europa, kärnvapenfrågor mm. On European security and cooperation, nuclear issues and more 
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