EU funds 17 February 2026, 9:45am

Canada seeks closer economic cooperation with the EU

Portfolio

A middle power is seeking a new role for itself in the changing global economic order: Canada would act as a strategic supplier to the European Union in the energy, defense, and critical raw materials markets. Speaking to the Financial Times, the country's finance minister said that Canada's geographical proximity to Europe, industrial capacity, and financial resources offer Europe an alternative in an increasingly confrontational global environment.

kanada bánya ritkaföldfém kitermelés nyersanyag ásványi anyagok

Canada is positioning itself as a supplier to the European Union in the areas of energy, defense, and critical raw materials, said François-Philippe Champagne, the country's finance minister, in an interview with the Financial Times in Brussels.

According to the newspaper, the message is in line with Mark Carney's speech in Davos, in which the prime minister called for closer cooperation between "middle powers" in response to the increasingly confrontational policies of the major powers, particularly the United States led by Donald Trump. Champagne said that

the global economic order is changing and that Canada could play a greater role in this than before.

According to the FT report, Ottawa is offering liquefied natural gas to Europe to reduce its dependence on US supplies. Champagne emphasized that Canada is geographically close to Europe, so it can act as a "natural partner." At the same time, the Canadian government is trying to maintain a delicate balance between climate goals and maintaining fossil fuel production; the minister described this as a "pragmatic moment" in the global economy.

In addition to energy, Canada is also offering the EU its critical raw material reserves and aerospace industry.

Champagne said that the country's industry is capable of supporting Europe's rearmament, citing Bombardier and CAE as potential suppliers. Canada is currently the only non-EU country with access to the EU's €150 billion SAFE defense credit program and €90 billion aid package for Ukraine.

While Ottawa pursues a "Buy Canadian" strategy at home, Champagne cautioned the EU against strict "Made in Europe" public procurement rules, saying that the parties belong to "the same family" and have more to gain from cooperation.

Canada also offered to host a global bank called the Defence, Security and Resilience Bank, which would collect sovereign guarantees and finance defense investments.

Although it is unclear how many European governments would join, according to the FT, the United Kingdom has already rejected participation.

Cover photo (for illustration purposes only): Getty Images