MONTREAL, Canada / EuroWire.IO / – The European Union and Canada have launched a strategic alliance covering artificial intelligence, critical minerals and support for Ukraine. The move came at the end of their 21st summit, held in Montreal on October 29 and 30. European Council President António Costa described it as the bloc’s closest partnership with a non-European country. Canadian Prime Minister Mark Carney hosted Costa and European Commission President Ursula von der Leyen.
Canada announced its intention to take part in the EU’s €90 billion Ukraine Support Loan, which covers Kyiv’s financing needs for 2026 and 2027. Carney said Canada’s initial participation would be €500 million, Kyiv Post reported. EU leaders welcomed the decision in a joint statement issued after the talks. The loan is designed to give Ukraine predictable financing as the war with Russia continues. Canada already takes part in the EU’s Security Action for Europe defence instrument.
The leaders named the initiative the Canada-EU Alliance for the Future. According to the joint statement, it aims to create a common prosperity and economic security space. Its work covers trade and regulation, digital and research technologies, critical raw materials and energy, financial services, security and people-to-people links. Von der Leyen said the alliance was not directed against anyone else. Carney said it would focus on collective sovereignty and resilience in AI, energy, critical minerals and quantum technology.
Investment bank to back mineral projects
Canada and the European Investment Bank have concluded negotiations on an agreement to facilitate European investment in Canadian critical resources, in particular critical raw materials. The bank will support financing for Canadian projects in the sector. The two sides will also develop secure and sustainable value chains for critical minerals and cooperate on stockpiling critical resources. A joint long-term feasibility study on liquefied natural gas exports from Canada to Europe is planned. The Canada-Euratom nuclear agreement will also be modernised.
The two sides agreed an artificial intelligence partnership aimed at developing safe AI systems. The joint statement commits them to cooperation on AI security and safety, governance and interoperability. Canada and the EU had already signed a memorandum of understanding on AI through their Digital Partnership Council. Work will also cover AI Factories and access to large-scale computing power. The EU welcomed Canada’s participation in the European High Performance Computing Joint Undertaking, which opens European supercomputers to Canadian researchers.
Digital trade deal to complement CETA
The leaders concluded substantive negotiations on a Digital Trade Agreement that will complement the Comprehensive Economic and Trade Agreement, known as CETA. The deal is intended to improve legal certainty and facilitate cross-border data flows. Canada and the EU will launch negotiations on deeper Canadian participation in the Erasmus+ youth and education programme. They will also negotiate a framework for Canadian access to Galileo satellite navigation services. Exploratory talks will begin on cooperation on the IRIS² secure satellite constellation.
The statement commits both sides to aligning climate policies, including carbon pricing and industrial decarbonisation, to reach their shared 2050 net-zero goals. They will work for ambitious outcomes at the COP31 climate conference next month. Institutional coordination will be strengthened through regular summits, joint ministerial committees and a new business council. The leaders aim to define, by the 2027 EU-Canada summit, an ever-closer association of Canada with the EU, short of full membership.