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Canada Becomes First Non‑EU Partner in €150 Billion SAFE Defense Program

Ottawa seeks to diversify defense sourcing by entering EU‑backed joint procurement, pending ratification of fees and content rules.

Overview

  • EU and Canada concluded negotiations allowing Canadian participation in SAFE, marking the program’s first third‑country access.
  • Participation opens EU‑supported joint procurement to Canadian firms, with government access governed by a bilateral agreement still to be ratified.
  • Standard projects require at least 65% EU content, and Canada may exceed the 35% non‑EU cap in exchange for a fee under terms still being finalized.
  • EU officials said 19 national plans have been submitted for SAFE financing, with at least 15 including funding for Ukraine measured in billions.
  • Parallel UK talks ended without agreement after disputes over the entry fee, underscoring the centrality of financial terms to third‑party access.