EU and Canada Sign Landmark $237 Billion Security Pact, Marking Shift in Transatlantic Defense

Brussels, June 23, 2025 – The European Union and Canada have signed a historic $237 billion security and defense agreement at the EU-Canada Summit in Brussels, marking the EU’s first such pact with a nation from the Americas and signaling a major shift in transatlantic defense cooperation.

The agreement, formalized by Canadian Prime Minister Mark Carney, European Council President Antonio Costa, and European Commission President Ursula von der Leyen, establishes a comprehensive framework for collaboration in crisis management, cybersecurity, maritime and space security, arms control, and support for Ukraine. It also opens the door for Canadian companies to participate in the EU’s Security Action for Europe (SAFE) joint procurement program, valued at €150 billion ($173 billion), as part of the broader €800 billion ReArm Europe initiative.

Key elements of the pact include:

• Annual security and defense dialogues between top officials from both sides.
• Enhanced cooperation on joint weapons procurement, cyber and space coordination, and digital governance, including AI and data policy alignment.
• Expanded support for Ukraine, improved Canadian military mobility in Europe, and increased maritime collaboration in areas such as the Indo-Pacific.
• A commitment to harmonize digital standards, strengthen online safety, and bolster the trustworthiness of AI systems.

Prime Minister Carney described the agreement as a crucial step for Canada to diversify its defense partnerships and reduce reliance on U.S. military frameworks, reflecting concerns over shifting U.S. foreign policy and global instability. EU leaders emphasized the pact as the most comprehensive ever completed with a non-European nation, aiming to reshape the transatlantic relationship and reinforce shared democratic values.

Canada’s participation in SAFE, however, will require further negotiations and purchase-by-purchase agreements, with a second accord needed before full access is granted. The partnership is expected to make defense procurement more efficient and affordable for Canada, while fostering deeper industrial and technological ties between the two allies.

The signing comes amid heightened geopolitical tensions, including continued Russian aggression in Ukraine and instability in the Middle East, and just ahead of a pivotal NATO summit in The Hague where increased defense spending targets are on the agenda.

European officials highlighted that the deal not only strengthens military cooperation but also lays the groundwork for broader economic, digital, and environmental collaboration, reflecting a shared commitment to a secure and prosperous international order.