Key facts
- Canada and the EU launched the Alliance for the Future on Friday.
- The partnership aims to increase market integration and reduce trade barriers.
- Canada will invest up to C$1.6 billion in Cohere Inc. for an AI merger.
- Canada will join Europe's supercomputing network for AI model training.
Canadian Prime Minister Mark Carney and European Commission President Ursula von der Leyen announced the Alliance for the Future on Friday in Montreal, aiming to create a deep partnership between Canada and the 27-member EU bloc. The alliance seeks to provide stability, enhance trade, reduce restrictions, and foster cooperation in areas like artificial intelligence and defense, while also addressing cost of living concerns. Leaders also discussed Canada potentially becoming an associate member of the EU, with further details expected at a 2027 summit. The announcement came amid concerns over geopolitical unpredictability, the weaponization of trade, and over-reliance on foreign technology providers.