Europe and Canada are moving closer together economically, technologically and potentially in defence, building on the CETA free trade agreement that has been in force since 2017. Trade between the two partners has grown by 80% since CETA took effect, with bilateral goods trade alone reaching €82 billion ($92 billion) in 2025.

Canada supplies the EU with critical raw materials, energy and technological expertise, while Europe provides a large market, advanced engineering capabilities and a strong industrial base. Experts see significant potential for deeper cooperation in areas such as critical minerals, digital technologies, defence, energy investment and student and workforce exchanges. The push for closer ties is also driven by geopolitical tensions and high US tariffs, prompting both Canada and the EU to reduce their dependence on the United States and diversify their economic partnerships.