EU and Canada plan broad alliance to counter U.S.-China dominance

Investing.com -- The European Union and Canada are preparing to outline a broad strategic alliance aimed at deepening economic, defense, and trade ties, according to a report from Bloomberg. The effort reflects an intentional push by middle powers to counter the growing dominance of great-power politics led by the U.S. and China. European Commission President Ursula von der Leyen is slated to announce the initiative during her annual state of the union address in Strasbourg on Sept. 16. Canadian Prime Minister Mark Carney will attend the speech and is expected to address European lawmakers the following day, underscoring Ottawa's commitment to forging closer integration short of formal EU membership. The upcoming framework aims to expand cooperation across critical supply chains, raw materials, space exploration, and scientific research. Negotiations are also focused on strengthening joint defense capabilities, building on Ottawa's move last year to become the first non-EU country to participate in the bloc's €150 billion ($174 billion) defense procurement fund. This diplomatic push follows earlier warnings from Prime Minister Carney, who declared at the World Economic Forum that the traditional rules-based international order has effectively fractured. Against that backdrop, both jurisdictions are seeking structural counterweights to unilateral economic pressure tactics and rising global trade friction. The alliance builds on an existing bilateral trade agreement and security partnership, with officials exploring how close Canada can legally align with the EU's single market. While discussions remain ongoing regarding necessary regulatory or legal mechanisms, both sides are scheduled to formalize next steps during a joint summit in Canada this October.