Canada, Europe seek to diversify without alienating US and China

Key facts

• Canada and the EU are intensifying transatlantic cooperation to diversify supply chains.
• Key focus areas include critical raw materials, energy, and AI.
• Officials aim to avoid antagonizing the US and China with new deals.
• The EU sees Canada as a source for critical minerals and fossil fuels.
• The term "associate membership" for Canada's relationship with the EU is debated.
• A digital trade agreement is expected to conclude on Friday.

Canada and the European Union are seeking to deepen their alliance and diversify critical supply chains, particularly for raw materials and energy, without provoking the United States or China. Officials are focused on tangible outcomes from the EU-Canada Summit in Montreal, aiming to strengthen sovereignty and strategic autonomy. The partnership is seen as crucial for reducing dependence on Beijing and Moscow.