On June 23, 2025, Canada signed the Security and Defence Partnership with the European Union1.
This partnership reflects the government's commitments to build defence capabilities, reduce U.S. reliance and increase NATO defence spending.
What Are the Key Priorities?
The main priorities include: strengthening dialogue and cooperation, building defence capabilities and increasing transatlantic security. While the partnership is not a comprehensive agreement and provides no specific timelines for implementation, it is an important first step to strengthening Canada's international partnerships, defence potential, and resiliency.
Strengthening Cooperation:
- establishing a series of dialogue and consultation mechanisms,
including:
- posting a defence representative to the European Union;
- continuing the annual Security and Defence Dialogue between Canada and the EU; and
- coordinating approaches and information sharing in the defence and security space, including non-proliferation and disarmament, space security, emerging and disruptive technologies, cyber, counterterrorism, violent extremism, hybrid threats, foreign information manipulation and interference, the nexus between climate change and security, and the full implementation of the Women, Peace and Security agenda.
Building Defence Capabilities:
- bolstering defence procurement cooperation through ReArm Europe/Readiness 2030;
- allowing the Canadian government to partner with other allied nations to buy military equipment under the Security Action for Europe (SAFE) program and participate in the $1.25 trillion ReArm Europe initiative2; and
- exploring further opportunities for capacity building through potential Canadian engagement with the European Peace Facility or other EU instruments.
Increasing Transatlantic Security:
- committing to work towards a bilateral agreement related to the SAFE instrument;
- exploring the possibility of an administrative arrangement between Canada and the European Defence Agency;
- collaborating in the area of human security and protection of vulnerable populations, as well as cooperative opportunities for bilateral information exchanges with third countries and likeminded groups; and
- bolstering maritime security, cybersecurity and mitigating
other threats to peace efforts by:
- naval cooperation (including with the Canadian Coast Guard);
- strengthening dialogue on the EU's initiatives and programmes in the maritime space;
- building capacity in the Indo-Pacific region.
What Are the Specific Areas of Shared Cooperation Under the New Partnership?
Canada and the EU will enhance information sharing and coordination in defence and security and relevant geopolitical issues, and expand cooperation in international peace and crisis management, including:
- peacekeeping operations;
- Common Security and Defence Policy missions and operations and crisis response;
- military mobility and operability;
- support to Ukraine; and
- developing shared EU and Canada defence initiatives, particularly on defence industrial related matters.
What Does this New Strategic Alliance Mean for the Canadian Defence Industry?
The partnership remains a preliminary framework to increasing Canada's defence capabilities with the EU.
Through increased collaboration and joint capability initiatives, this new defence pact may provide future opportunities for Canadian defence contractors as Canada works to increase its security capabilities and bolster its defence spending.
However, much of the partnership speaks to Canada integrating into pre-existing EU programs and opportunities (for example, potential access to ReArm Europe and its involvement in PESCO projects) and, at least at this juncture, the opportunities for Canadian defence would seem to arise from Canada's greater involvement in initiatives and programs, versus potential access to the EU defence market.
As Canada's defence initiatives increase, suppliers will need to understand and navigate this complex area of procurement. Our legal professionals have the necessary knowledge and expertise to assist you and your business.
Footnotes
2. https://www.pm.gc.ca/en/news/statements/2025/06/23/joint-statement-enduring-partnership
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