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At a summit in Montreal, Canadian and European Union leaders unveiled an "Alliance for the Future," a proposed partnership to expand trade, boost economic security and deepen cooperation.

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00:00Joining me now from Ottawa is Veena Najibola from the Center for Strategic Statecraft.
00:04That's an independent, nonpartisan policy institution.
00:08Veena, it's good to have you with us.
00:10You know, we've been hearing this phrase from leaders, alliance for the future.
00:15I mean, when officials talk about trade, critical minerals, technology and defense all in the same breath,
00:22what are they really trying to achieve?
00:27Thank you so much for the invitation.
00:29So I think what they're trying to achieve is the closest possible relationship between Canada and the European Union,
00:36short of membership for Canada, because Canada can become a member given our geography.
00:42So this is about building a really strong partnership in all those sectors that you mentioned,
00:48energy, trade, technology, defense, and really recognizing that Canada and Europe have a unique relationship,
00:56shared values, but also based on shared vulnerabilities and the need to really build options
01:03and a lot more strategic autonomy when it comes to their relationship with the U.S. in particular.
01:10So I think this represented a turning point in the transatlantic relationship and a new phase in the relationship between
01:18Canada and Europe.
01:20Neither side is saying that this is about distancing themselves from the United States,
01:25but there is clearly, as you say, a desire to be less dependent on Washington.
01:30How significant is that shift?
01:35It is significant.
01:36And of course, the relationship between Canada and Europe has its own strategic logic.
01:41Our economy is a complementary.
01:43We share values.
01:45We want to be more aligned.
01:46But the issues with the Trump administration, the unpredictability, the coercion that we've seen
01:52a Trump administration exercise against allies in Europe and in Canada
01:56has become an accelerator in bringing these two parties closer together.
02:01So we're seeing just so much more activity between Canada and Europe.
02:05Some of that existed before, but not at this level.
02:09And I think it has to do with this need to become less reliant on a much, much less dependable
02:16United States.
02:17Yeah, it's interesting that trade is not the only focus here.
02:21I mean, we're hearing about critical minerals, technology, supply chains, defense cooperation.
02:26What is driving that expanded agenda?
02:30It can't all be because of Trump's agenda, can it?
02:36You're right.
02:37So trade is not the only thing.
02:38Although the announcement around the digital trade agreement, I think, is significant.
02:42What both Canada and Europe are trying to do, they're trying to build what they're calling strategic capabilities.
02:49They're recognizing that they're much more vulnerable to coercion, not just from the U.S., but also from China.
02:55And they need to have options when it comes to, for instance, AI and AI governance,
03:01when it comes to having resilient supply chains.
03:04So critical minerals is a key area because so much of that comes from China.
03:09About 90 percent of refining is China-based.
03:12And we've seen China use that as a weapon when it comes to its trade negotiations with Europe and Canada.
03:18So there is a desire to build resilience and sovereignty through this partnership.
03:24So it's a new model.
03:25Canada, incidentally, just launched its national security strategy, the first one in two decades.
03:31It came out yesterday.
03:32And it actually, in that document, says that we want to build strategic capabilities together with Europe.
03:39So this relationship between Canada and Europe is also being pitched as kind of an anchor,
03:45a beacon for the other democracies in Asia, for instance, Japan, Korea, and so forth.
03:50So we're seeing a shift in the relationship that was led by the U.S.
03:55In the past, Canada and Europe cooperated through NATO, G7, and other institutions that were U.S.-led.
04:01We're now seeing the two come together and try to create alternatives and almost be sort of this example to
04:09other democracies around the world.
04:11I'm wondering, after this summit, just how close will the EU and Canada really be?
04:18European Commission President Ursula von der Leyen, she wants Canada to possibly become an associate member of the EU.
04:26And we know that Germany and France and some other EU members do not want that.
04:30So what tells you that this summit will not end up being just a family photo op?
04:38That's a great question.
04:40Of course, the ambition is high.
04:42The political momentum is there.
04:43But a lot will depend on can they actually deliver and implement?
04:47Can they actually deliver on joint policies, on joint programs, procurement?
04:52And will this make a difference for people in Canada and in Europe?
04:56So I mentioned that this is the beginning of a process.
04:59This is not the end.
05:00We'll see what happens in the next few months.
05:02They've charted a path forward, sort of saying that they'll meet again in March and then again in June.
05:07So the implementation will be really important to watch.
05:11Europe has its own divisions among 27 members.
05:14But remember, Canada is also a confederation.
05:16We have 10 provinces.
05:18There are some disagreements here as well.
05:20So I think the road ahead is not going to be easy.
05:23But this was a really important start.
05:26Vina Najibullah from the Center for Strategic Statecraft.
05:29Vina, good to have you on the program.
05:30Good to get your insights tonight as well.

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