Canada and Europe will sign a little closer on Monday as Prime Minister Mark Carney signed a strategic defense and security partnership with the EU.
The agreement will participate in a $1.225 billion European program for Canadian companies, which is seen as a step to reduce Canada's dependence on the United States and less vulnerable to impact.
Ultimately, this will also help the Canadian government and partners of other allies purchase military equipment under the so-called security scheme.
Further negotiations and agreements will be needed before these two aspects become reality.
Carney has signaled for months that his administration is not satisfied with using up to 70% of military equipment for U.S.-made equipment.
Other non-EU countries, including the UK, have reached their own strategic agreements. Australia said last week it had begun negotiations on a deal with Europe.
Chief Political Correspondent Rosemary Barton talks with former NATO Secretary George Robertson about how to help Canada reduce its dependence on the United States
The focus is on the joint equipment procurement aspect of the upcoming transaction. However, the UK agreement was released on May 19, establishing a series of institutional links on crisis management, maritime security and cybersecurity.
It is far less comprehensive than the NATO alliance. But, given the increasing uncertainty of the reliability of the Trump administration, partnerships are important.
“It can complement NATO. It's not necessarily a replacement,” said Stephen Saideman, who serves as president of international affairs at Carlton University in Ottawa.
“It makes sense to work with as many Europeans as possible,” he said. “Maybe if we do something like this, NATO can live even if the United States withdraws.”
NATO debate
Carney will attend the North Atlantic Treaty Organization summit in The Hague, Netherlands after signing a defense and security agreement with the EU
The Western military coalition, which consists of 32 members, will debate to raise the defense spending benchmark to 5% of a country's GDP (3.5% of direct military spending and another 1.5% of defense infrastructure).
Christian Leuprecht, a professor at the Royal Military Academy in Kingston, Ontario, said the way the defense partnership and the European post-European plan were formulated cannot be seen as a replacement for NATO because the individual arrangements do not operate the military aspect.
However, an important aspect of the UK agreement is to strengthen cooperation through “communication of situational awareness and threat assessment in common areas of interest, including confidential information.”
The agreement continues: “The UK and the EU will explore other measures in line with the security of the UK’s information law to ensure that confidential information can be exchanged quickly, securely and efficiently. This is important because the UK (like Canada) is part of a five-eye intelligence sharing network, including the United States.
It is not clear whether the Canadian transactions contain similar regulations.
Leuprecht described Europe as a “cartel” whose mission is to reduce the price of military equipment through collective procurement.
An important part of the EU plan is the Security Loan Program, which allows member states to borrow funds at a tax rate that is more favorable than borrowing directly to the state. Leuprecht said it aims to give smaller countries with lower fiscal capacity and lower credit ratings.
He added that Canada may not necessarily have access to the $235 billion fund. Exceptions may be required if non-EU countries requiring funding (e.g., Ukraine (which is part of the master plan).
Loan programs have some rules that encourage members to purchase European and partner equipment.
