Canada is negotiating with the European Union to join the bloc's new project to expand its military industry, a move that would allow Canada to participate in the creation of European fighters and other military equipment at its own industrial facilities, The New York Times reports, UNN writes.
Details
According to the publication, the beginning of defense cooperation between Canada and the EU, which is trying to strengthen its industry to reduce its dependence on the United States, will spur Canadian military manufacturers and offer the country a new market at a time when its relations with the United States have deteriorated.
Canada's new leader, Prime Minister Mark Carney, made Paris and London the destinations of his first foreign trip this week after taking office on Friday, calling Canada "the most European of non-European countries".
Two officials, one from the EU and one from Canada, who are directly familiar with the discussions, said that "detailed negotiations are currently underway to include Canada in the European Union's new defense initiative".
The goal is to raise the EU's defense industry and eventually offer a viable alternative to the now dominant United States, the publication writes.
In particular, according to officials, Canada will be able to become part of the European military production register, selling its industrial capacity to create European systems, such as the Saab Gripen jet, a competitor to the US F-35 manufactured by Lockheed Martin.
Officials said that specific contracts are not yet being discussed.
The EU's €150 billion ($163 billion) lending program to finance joint military development prioritizes European-made products, with 65 percent of the value of components coming from either the bloc or partners who have signed some type of agreement with it. Under the current negotiations, Canada will help supply an additional 35 percent and could go further if it reaches an additional agreement for even closer involvement.
Canada, according to the terms of the discussion, will also be granted preferential access to the EU military equipment market, an alternative to buying equipment from the United States.
On Tuesday, Carney announced that Canada had reached an agreement on radar technology with Australia.
Canada's military industry, which is relatively small, has been used to manufacture Canadian equipment, but has also been a regular contractor for the creation of U.S. military equipment or parts. Canadian factories across the vast country produce ammunition, tanks, aircraft, technological protection systems and naval vessels.
An in-depth review of the industry in 2022 found that about half of Canada's military equipment was exported and half remained in the country. The largest export destination by far was the United States.
Since Trump's election, Canada has been working more and more closely with partners across the Atlantic, trying to diversify its trading partners and defense allies, distancing its core relationship with the United States.
In a document prepared by the EU to outline plans for its defense initiative, Canada was specifically mentioned, the publication writes.