EU, Canada set to unveil digital trade and critical minerals pacts at Montreal summit

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OTTAWA/BRUSSELS — The European Union and Canada are preparing to announce a series of new agreements on digital trade, critical minerals and wildfire-fighting aircraft at a bilateral summit in Montreal next month, according to a draft joint statement seen by AFP on Wednesday. The document has been circulated among EU member states for input.

The summit would produce a digital trade deal aimed at making digital transactions between the two partners "faster, lower-cost and more secure," along with an agreement to deepen cooperation between their competition authorities, the draft says. A separate pact would let the European Investment Bank finance Canadian critical minerals projects.

According to the draft obtained by Politico, the two sides want to accelerate investment in critical mineral projects, strengthen supply chains and improve supply security — including stockpiling resources as protection against "market fluctuations and geopolitical impacts." Energy cooperation would span liquefied natural gas, hydro, solar, wind and nuclear, with strategies, standards and industries aligned across both economies.

On wildfires, Ottawa and Brussels plan to announce a joint purchase of 50 De Havilland water bombers, ready for use in Canada and Europe by 2030.

The talks build on European Commission President Ursula von der Leyen's September 16 invitation for Canada to become the EU's first "associate member" — an offer that drew an immediate tariff threat from Trump. After Ottawa-Washington talks collapsed in August, Trump imposed tariffs of 25% to 50% on Canadian goods and floated the idea of absorbing Canada as a "51st US state." The Montreal summit begins October 29.