What will an EU alliance with Canada bring to consumers in Europe?

Consequences for consumers and companies What will an alliance with Canada bring to the Europeans? As of: October 29, 2026 • 2:12 p.m

The EU and Canada want to move closer together economically and politically. Could increased cooperation secure Europe's supply chains, keep prices stable, and reduce dependencies?

It is still unclear how a closer connection to Canada could make life and work easier for EU citizens in Canada - whether an immigration agreement would even be possible. There was already talk of further reducing bureaucratic trade barriers and mutually recognizing more professional qualifications. Canada would like to take part in the EU Erasmus+ program for student exchange and is planning to expand research alliances.

However, companies and consumers are already benefiting from the existing CETA free trade agreement on both sides of the Atlantic - although it is still half a construction site, as the Plusminus podcast shows in its current edition. The parliaments of nine EU countries have not yet approved CETA. However, almost all tariffs between the EU and Canada were eliminated in September 2017.

The CETA issue shows that there are different national interests and fears in Europe. European farmers' associations and consumer advocates in particular warn that certain Canadian goods do not comply with European animal welfare and environmental protection rules and that competition is therefore unfair. That's why there are upper limits on imports, for example for food.

Last year there was panic buying by importers, especially from the USA. more

In principle, the CETA balance sheet has been impressive so far: trade between the EU and Canada has increased by around 80 percent. Canadian and German companies save 600 to 900 million euros in customs fees every year. According to the EU Commission, only two thirds of the customs leeway has been exhausted so far.

Foreign trade with Canada could increase significantly again in the next few years. Which could also mean: more exports and more stable jobs in Europe.

A range of dairy products, alcoholic beverages and motorcycles are among those affected. more

Canada and the EU recently jointly ordered new firefighting aircraft to be used on forest fires in Europe and Canada. This actually brings us closer together. This could save nature and human lives during future heat waves.

In addition, the processing of critical raw materials will be expanded together. The goal is to become more independent from China. China dominates the world market with its unrivaled, cheaply manufactured intermediate products.

In Strasbourg, Prime Minister Carney spoke out in favor of a stronger partnership between Canada and the EU. more

Dependence on China's cheap products is seen as a danger by Western democracies. However, own plants for processing critical raw materials with Western environmental standards and labor costs are extremely expensive. Billions of dollars in state funding would be necessary.

Canada already produces ten of the twelve raw materials classified as defense-critical by NATO. The only things missing are rare earths and manganese. But Canada also has large reserves of this.

However, the mining and processing of rare earths, for example, requires the use of aggressive acids. And highly toxic and radioactive waste is created.

Trade is already going well. We answer why that is the case. more

There is great interest on both sides of the Atlantic in establishing our own secure supply chains for the production of semiconductors or batteries, for example. There are some German-Canadian collaborations.

The raw materials company Rock Tech, for example, wants to produce lithium hydroxide for batteries in Ontario and Brandenburg. It would be the first European lithium converter.

However, investor funds amounting to 750 million euros are still missing. In Ontario they are looking for investors for 600 million Canadian dollars.

Canada and the EU want to work together even more - but how exactly is still unclear. more

Germany and Canada want to build a joint submarine fleet. The German manufacturer TKMS, a Thyssenkrupp subsidiary, has received a 62 billion euro order.

The Schwarz Group, owner of LIDL and Kaufland, has invested half a billion in a German-Canadian AI company. This is intended to reduce dependence on US software. The European-Canadian AI software is intended to be used in authorities, banks and defense.

Highly sophisticated German carrier rockets from the Munich start-up Isar Aerospace are soon to launch into orbit from the east coast of Canada.

US President Trump wants to hit Canada hard with new tariffs. Prime Minister Carney is not giving in. more

For more security in Germany's energy supply, liquid gas deliveries from Canada and "green" hydrogen are planned.

More than 640 German companies are already active in Canada, including big names such as Siemens, Bosch, Stihl, BMW, VW, Mercedes, Rheinmetall and Dr. Oetker. Many German companies have been doing good business there for a long time and are wondering why US President Donald Trump is so unnecessarily destabilizing the structure in North America - and driving Canadians, who are considered very likeable, into the arms of other trading partners.

Conclusion: There are already many contacts, collaborations and plans. So far, Canada is only in 25th place in the German export country list and in twelfth place for the EU as a whole. So there is potential for growth.

This topic in the program: Plusminus. The ARD business podcast | Oh, how beautiful is Canada? | 10/28/26 | 11:22 a.m