Prime Minister Mark Carney speaks with European Commission President Ursula von der Leyen at the European Parliament in Strasbourg, eastern France, on Sept. 17.Pascal Bastien/The Associated Press
Canada and the European Union will launch a new “alliance for the future” on trade and defence co-operation at a Montreal summit next week, according to a draft joint statement that says Canada will be treated as an “associate member” of the 27-country economic bloc going forward.
The statement, when finalized, will be released at the Canada-EU summit to be held Oct. 29 and 30 that will bring together Prime Minister Mark Carney and European Commission President Ursula von der Leyen as they look for ways to reduce economic reliance on the United States.
It says Canada and the EU will co-operate to make it easier for businesses and investors to operate across the Atlantic in order to “increase cross-border capital flows, strengthen financial market integration, and improve opportunities for consumers, financial institutions, businesses and investors.” These efforts, it says, will help “mobilize capital for strategic sectors and support long-term economic growth and competitiveness.”
Efforts include “connecting instant payment systems to facilitate faster, lower-cost and more seamless cross-border transactions,” making it easier for Canadians and Europeans to conduct business, invest and transfer funds internationally, the draft said.
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It would also commit Canada and the EU to more support for Ukraine as it fends off a full-scale invasion from Russia and further pressure on Moscow. “We will continue to provide comprehensive political, financial, economic, energy, humanitarian, military and diplomatic support to Ukraine and its people,” the draft said.
The draft joint statement says the EU will invite Mr. Carney to attend a European Political Community meeting in Dublin next month and speaks of “increasingly frequent exchanges with Canadian ministers in relevant Council and ministerial meetings” of the bloc, as well as summits, consultations on policy and regulatory initiatives.
“Canada’s participation in these processes” will be “as an Associate Member of the Union,” according to the draft statement, which was updated last week and discussed at the European Union Wednesday, according to a source familiar with deliberations.
Just what “Associate Member” encompasses will be hammered out over the next year, it says.
“The full scope of this associate membership will be defined by the 2027 Canada-EU Summit,” according to the draft.
The Globe is not identifying the source because they were not authorized to discuss the draft joint statement publicly.
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Both sides will also agree to preferential treatment of each other’s industries. “We will ensure mutually favourable treatment in our respective economic security measures, based on the principle of reciprocity in industrial sectors where both sides have agreed to align their external measures to ensure the same outcome, to ensure supply chains are protected consistently across our markets,” the document says. “This cooperation will cover critical supply chains and technologies as well as cooperation on preventing technology leakage.”
This draft joint statement was first reported by Bloomberg News.
Canada and the EU will also co-operate on building telecommunications cables connecting them and Asia, the draft statement says, as capitals in both jurisdictions grow concerned about sending digital traffic through the United States.
“We will launch joint initiatives to improve secure international connectivity between Europe, Canada and Asia through new subsea cable infrastructure,” the statement says. “As part of these efforts, we will assess cable routes, points of interconnection, and engage with industry. Our goal is to develop new infrastructure to enhance economic growth, route diversity, and resiliency.”