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#Canada is in advanced talks w/the #EU to join the bloc’s new project to expand its #military industry, a move that would allow Canada to be part of building European fighter jets & other military equipment at its own industrial facilities.

The budding #defense cooperation between Canada & the EU, which is racing to shore up its industry to lower reliance on the #US, would boost Canada’s military manufacturers & open up a new market at a time when its relationship w/the US has become frayed.

Shaken by a crisis in the 2 nations’ longstanding #alliance since #Trump’s election, #Canada has started moving closer to #Europe. The #military industry collaboration w/the #EU highlights how traditional #US #allies are deepening their ties without US participation to insulate themselves from Trump’s unpredictable moves.

2 ofcls, one from the #EU & one from #Canada, w/direct knowledge of the discussions said detailed talks were underway to incorporate Canada into the EU’s new #defense initiative. The goal is to boost the EU’s defense industry & eventually offer a credible alternative to the #US, which is now dominant.

Specifically, the ofcls said, Canada would be able to become part of the European #military manufacturing roster, marketing its industrial facilities to build European systems….

The #EU is taking major steps to increase #military spending, both loosening budget rules so that countries in the bloc can spend more & proposing a 150B euro loan program to finance shared military development.

That program is meant to prioritize European-made products, with 65% of component costs coming either from within the bloc or from partners that have signed a specific type of deal with it.

Under the current talks, #Canada would help supply the additional 35% & could go further if it brokered an additional agreement to participate even more closely.

Canada, acc/to the terms of the discussion, would also be given preferential access to the #EU market for #military equipment, an alternative to buying equipment from the #US.

…#Trump has been insisting that #Canada should simply become part of the #UnitedStates, citing the dependence on the American #military as one argument.

On Tues, PM #MarkCarney announced that Canada had struck a radar technology deal w/ #Australia.

Canada’s military industry, which is relatively small, has been used to produce Canadian equipment but has also been a regular contractor for building American military equipment or parts.

Since #Trump’s election, #Canada has been increasingly aligning itself more closely w/partners across the Atlantic, seeking to diversify #trading partners & #defense #allies away from its core relationship w/the #UnitedStates.

In a document prepared by the #EU to lay out the plans for its #defense initiative, Canada was explicitly mentioned, hinting to the talks to absorb the country into the EU #military industry project.

#Carney spoke w/ Ursula #vonderLeyen, president of the European Commission, on Sunday, & military industrial cooperation was discussed….

“Our cooperation w/ #Canada has intensified & should be further enhanced, also to strengthen trans-Atlantic #security,” said the #EU document, released on Wednesday. It added that talks were underway “including on respective initiatives to boost defense industry production.”