CANADA · ANALYSIS

Canada is courting Europe at a summit in Montréal this week because its biggest customer, the United States, now takes a shrinking share of its exports. Here is what is at stake and what to watch.

Canada sends most of its exports south, yet it is now asking Europe for a bigger role in its trade, defence and minerals. This summit tests how far that pivot can go.

File photo: the Berlaymont building in Brussels, headquarters of the European Commission.

What Is Happening in Montréal

Canada and the European Union open a two-day summit in Montréal on Thursday 29 October 2026. Prime Minister Mark Carney is host, joined by António Costa, who chairs meetings of EU leaders, and Ursula von der Leyen, who heads the EU’s executive arm, the European Commission.

Canada’s government says the talks cover trade and market access, defence and security, and technology and energy.This is a political event with an economic purpose.Both sides want to show they can act together while US trade policy stays unpredictable.

Why Canada Is Looking East

Canada still sells most of what it exports to the United States. According to Global Affairs Canada, the federal foreign and trade ministry, the US took 72.5% of Canadian goods exports in 2025, down from 76.3% in 2024.

That is the lowest US share since the early 1980s. The EU made up 8.6% of Canada’s total trade in 2025, and total trade with the bloc grew by 10.9%.

Canada’s goods exports to the EU rose by 23.4% that year. The gap is still large, so Europe can widen Canada’s options but cannot replace the US market soon.

What the Existing Trade Deal Already Does

The Comprehensive Economic and Trade Agreement, known as CETA, has applied provisionally since 21 September 2017. Provisional means most of it works, while some parts still depend on approval in every EU member state.

Canada wants European firms to use that access more, in energy, farm goods and industrial products.

Defence and Minerals: What Each Side Brings

Canada became the first non-European country to join the EU’s Security Action for Europe, known as SAFE, according to the Canadian and EU governments. SAFE is an EU financing scheme that backs joint defence purchases and opens contracts to Canadian companies.

Canada’s pitch centres on energy and critical minerals. Critical minerals are metals such as lithium and nickel that batteries and defence equipment need.

Europe wants more secure supplies of those materials. Canada wants investors and long-term buyers, not only declarations.

What It Means for You

For a US investor or executive, the message is that Canada is spreading its trade risk. Firms that buy Canadian metals, energy or parts may find European bidders competing for the same supply over time.

Nothing at this summit rewires North American supply chains in a week. The signal to watch is whether European banks and funds commit capital to Canadian mines and export infrastructure.

What We Do Not Know

No joint statement or signed package had been published when we checked on 29 October. We therefore do not report any deal terms, funding amounts or contract values.

Frequently Asked Questions

When is the Canada-EU summit in Montréal?

The summit runs on 29 and 30 October 2026 in Montréal, Québec. Prime Minister Mark Carney hosts António Costa, who chairs EU leaders’ meetings, and Ursula von der Leyen, who heads the EU’s executive arm.

How much of Canada’s trade goes to the United States?

The US took 72.5% of Canadian goods exports in 2025, down from 76.3% in 2024, according to Global Affairs Canada. That is the lowest share since the early 1980s.

What is CETA?

CETA is the Comprehensive Economic and Trade Agreement between Canada and the EU. It has applied provisionally since 21 September 2017.

What is SAFE?

SAFE is the EU’s Security Action for Europe, a financing tool for joint defence purchases. Canada is the first non-European country to join, according to the Canadian and EU governments.

Sources: Prime Minister’s Office of Canada, Global Affairs Canada, 2025 merchandise trade review. Retrieved 29 October 2026.