Canada has reached an agreement to join the European Union’s €150 billion Security Action for Europe (SAFE) program.
The deal will give Canadian defence companies expanded access to the European market, Prime Minister Mark Carney’s office said this week.
Canada is the first non-EU country to join the defence fund.
In a statement, he said: “Canada’s participation in SAFE will fill key capability gaps, expand markets for Canadian suppliers, and attract European defence investment into Canada.”
READ NEXT: UK could secure agreement ‘within weeks’ to rejoin EU’s Erasmus scheme
A joint statement from the EU and Canada described the deal as the “next step in our deepening cooperation.”
In a post on X, Carney wrote: “In a dangerous and divided world, Canada and Europe are elevating our defence partnership.
“That means more access to new equipment for our Armed Forces, more investment in Canada, and massive opportunities for Canadian workers and businesses.”
Commission President Ursula von der Leyen wrote: “Welcome to SAFE, Canada! When like-minded partners join forces on security and defence in a turbulent world, our countries grow stronger, our industries benefit and our citizens are safer.”
As part of the SAFE scheme, Canada will have access to jointly financed defense projects and allows Canadian companies to bid into EU-supported joint procurement projects.
The scheme is part of a major drive from the EU to defend itself by 2030 amid the growing threat from Russia and the prospect of losing US funding.
Last week, talks around the UK joining the EU defence scheme broke down.