With Canada-U.S. trade tensions strained, Prime Minister Justin Trudeau is looking to shore up relationships with other allies.
Trudeau is travelling to Europe on Saturday, where he’ll be until Wednesday, seeking to “strengthen transatlantic co-operation.”
That’s how his office is framing the overall objective of the five-day trip.
But in his own remarks at the Canada-U.S. Economic Summit on Friday, Trudeau laid out plainly his intention of trying to secure some back-up plans as the clock is ticking on U.S. President Donald Trump’s tariff pause.
Listing off a range of global trade deals the federal government has signed or made progress on over the last decade, Trudeau said the time has come to circle back and see if there’s more that can be done.
“It’s not enough to just sign a trade deal. We have to actually then follow up on it with trade missions, with actual investments, with partnerships,” Trudeau said.
“We have a free trade deal with Europe that has seen opportunities grow significantly over the past years. But can we do even more? Can we look at diversifying our supply chain so that we do have those opportunities internationally as well?” the prime minister said to a crowd of cross-border business leaders.
“Can we look at new markets that we’re opening up? There’s so many different opportunities and challenges we can get to that there is a moment right now that we all should be talking about.”
Trudeau is flying first into France on Saturday, where he plans to spend the majority of this trip.
France is Canada’s fourth largest merchandise export market in the European Union, with bilateral merchandise trade totalling $12.9 billion between the two countries in 2023.
Trudeau to speak at AI summit
While in Paris, the prime minister will be taking part in the AI Action Summit hosted by French President Emmanuel Macron at the Grand Palais.
Among the key questions the summit is seeking to answer, or at least assess, include: How to develop AI and deploy it across the world? How to preserve freedoms in the AI revolution? And, how to ensure AI serves society and the public interest?
Trudeau will be delivering a keynote speech at the summit highlighting Canada’s leadership in the artificial intelligence sector and the importance of international collaboration to developing this technology ethically.
In 2017, Canada became the first country in the world to introduce an AI strategy, and in the last federal budget Trudeau committed $2.4 billion to try to secure what the Liberals see as this country’s “advantage.”
The sector attracts billions in venture capital, and has created numerous high-paying jobs in cities across the country. There are three national AI institutes in Canada, Amii in Edmonton, Mila in Montreal, and the Vector Institute in Toronto.
Western University’s first-ever Chief AI Officer Mark Daley said Trudeau attending and speaking at the summit “sends a really important message that this is top of mind for our government.”
Daley told CTV News he’s watching for a few key takeaways from the summit, and whether the prime minister commits Canada to any further action.
“I’m watching to see where the various different nation states and sub-sovereign jurisdictions land on what’s next. What do they perceive as the near future, and what actions will they be taking?” he said.
Set to be attended by industry and government representatives from nearly 100 countries, on the margins of the AI conference the prime minister has plans to meet with other world leaders to discuss international trade, security, and economic stability.
These conversations will contribute to Canada’s stage-setting as this year’s G7 President, with a summit set for June in Kananaskis, Alta.
PM meeting EU leader as tariff threat looms
Before concluding the overseas visit, Trudeau will be making a quick stop in Brussels.
There, he’ll attend Canada-European Union Leaders’ Meeting where supporting Ukraine and the economic and trade agreement known as CETA will be on the agenda.
The EU market, comprising 27 member states, is Canada’s second-largest global trading partner for goods and services, as well as for two-way direct investment, after the United States.
In 2023, Canada-EU trade in combined goods and services was valued at $157.3 billion.
Last weekend, Trudeau spoke with the President of the European Council Antonio Costa about Trump’s tariffs, and according to the Prime Minister’s Office, the two leaders “underscored the importance of continued co-operation to promote security and economic prosperity for people on both sides of the Atlantic.”
Their conversation came amid the European Union asserting it would “respond firmly” should the U.S. president follow through on imposing tariffs he’s said he “absolutely” would. A day after Trump signed the order pausing trade action on Canada, he indicated tariffs on EU member countries could “soon” be coming.
Asked how Canada intends to proceed at such an uncertain and economically tumultuous time, Foreign Affairs Minister Melanie Joly told reporters last week that said she intends to work with allies, including those “we haven’t always worked as closely with, which are, of course, Europeans, the Brits, and also our friends in Asia.”
Trudeau to ‘reaffirm’ NATO commitment
The prime minister also plans to meet with NATO Secretary-General Mark Rutte while in Brussels, where his office says Trudeau intends to “reaffirm” Canada’s commitment to the alliance.
Canada is one of the few NATO countries that has yet to meet the pact’s decade-old agreed-upon goal to spend two per cent of GDP on defence. Trudeau pledged this summer to meet the target by 2032, though some officials have suggested it could be reached sooner.
Canada has faced widespread criticism for its failure to meet its spending promise, and the issue has been a sticking point in the alliance. Trump’s re-election, has also added a new sense of urgency, considering the commander-in-chief’s recent comments about NATO and his desire to boost defence spending to five per cent of GDP.
According to NATO’s most recent figures, Canada was projected to spend 1.37 per cent of GDP on defence in 2024.
While Trudeau’s target for Canada carrying its full weight on spending remains at eight years after the original deadline, a few of the candidates looking to replace him as Liberal leader and prime minister one month from now, have pledged to speed up.
Former deputy prime minister and finance minister Chrystia Freeland is committing to hitting the two per cent target by 2027, and former Bank of Canada and Bank of England governor Mark Carney has vowed to hit two per cent by 2030.
One of his last trips before leaving office
Trudeau has already announced his resignation, and is expected to step aside as prime minister once the next Liberal leader is named on March 9.
While it’s not yet confirmed that this could be Trudeau’s last trip as prime minister, it is certainly one of the last.
With that in mind, the European visit could be viewed as a bit of a farewell tour for the prime minister.
Likely to connect with numerous allies over the next few days, Trudeau may be looking to impart some final sentiments on the world leaders who will have to continue navigating a rapidly shifting global landscape and the uncertainty Trump has injected, in the months ahead.
“Canada and the EU have been partners for a long time. They agree on most items, but it’s typically been in the background. It’s like if you have a friend and things are going okay… you might not need that friend,” said Ruben Zaiotti, director of the Jean Monnet European Union Centre of Excellence at Dalhousie University.
“But when things start going not that well, then you might need a friend,” he told CTV News.
“I’m pretty sure Canada and the U.S. are eventually going to repatch the relationship, but it’s going to take some time. The EU for Canada … there’s a friendship that can be helpful for both in this case.”
