As EU-Ukraine defence ties tighten, where does that leave Canada?
By Sam Paquette
The first meeting of the EU-Ukraine Task Force for Defence Industrial Cooperation took place on 12th May 2025, as part of the 2nd EU-Ukraine Defence Industry Forum. The EU is Ukraine’s largest defence backer and has aspirations to integrate its defence sector with its key partners, including Ukraine and Canada. The Task Force specifically aims to integrate the Ukrainian defence industry into the European Defence Technological and Industrial Base (EDTIB), to encourage joint procurement processes with allies, and to enhance the EU’s capabilities in priority areas such as explosives and drones.
The Ukrainian government launched the EU-Ukraine Forum as a part of a series of international defence industry events. This forum is part of the EU’s commitment to address Ukraine’s pressing military and defence needs. To accomplish this, under the European Peace Facility, the EU and its member states have provided Ukraine with €50.3 billion, including both lethal and non-lethal equipment and ammunition. In short, the EU-Ukraine defence partnership remains mutually beneficial as Ukraine received much-needed military support, while the EU hopes that Ukrainian arms exports could bolster its defence build-up.
More specifically, the war has accelerated Ukraine’s innovation cycle by speeding up the process of testing and building new equipment on the battlefield. Ukraine’s private defence sector has also expanded its production capacity in drone manufacturing. Beyond the battlefield, this newfound expertise could help several EU member states modernize their forces and fill critical capability gaps.
The enhanced EU-Ukraine defence cooperation also comes at a time when Canada ramped up its efforts to strengthen ties with Europe as a way to decrease its dependence on the US. On the Ukraine side, Canada has provided C$4.5 billion in lethal and non-lethal aid, trained Ukrainian forces, and recently committed C$100 million to support Ukrainian drone production through the Danish Model. On the European side, Prime Minister Mark Carney recently said that Canada is looking to join the €800-billion loan-based ReArm Europe/Readiness 2030 plan by July 1st.
Canada joining Europe’s rearmament plan comes against the backdrop of Canadian officials negotiating a defence deal with the EU that could be beneficial for Canadian aerospace, artificial intelligence, and shipbuilding companies. However, some experts suspects that some EU member states have been reluctant to engage in such a deal with Canada due to its lagging defence spending and limited progress in supplying LNG exports to Europe. Despite these hesitations, joining ReArm Europe could be a strategic benefit for Canada, given that it includes the €150-billion SAFE program, designed to fund joint defence initiatives. The SAFE program could greatly benefit Canada’s defence industry, particularly by enabling non-EU members, including Canadian and Ukrainian defence companies, to participate in joint weapons manufacturing to reach EU production goals.
Defence industry cooperation is an increasingly important subject in Canadian, European, and Ukrainian political circles, particularly as the US withdraws from its security commitments. However, without a formal agreement, Canada remains isolated from the economic opportunities that could come from this enhanced defence cooperation, especially as NATO partners are expected to agree to a 5 percent target of GDP on defence spending in June.