Significant opportunities within a geopolitical realignment

Prof. Dr. Philip Meissner

Philip Meissner, Professor am Lehrstuhl für Strategisches Management und Entscheidungsfindung an der ESCP Business School Berlin, sieht große Potenziale der Zusammenarbeit zwischen der EU und Kanada insbesondere bei Künstlicher Intelligenz, grüner Energie und Sicherheit. Meissner war Panel-Speaker der diesjährigen Deutsch-Kanadischen Konferenz in Ottawa und geht in seinem Gastbeitrag auch auf die derzeitigen politischen Beziehungen zwischen Kanada unter Premierminister Mark Carney und den USA unter der Führung von Präsident Donald Trump ein.

Von Philip Meissner

Which possibilities for collaboration should the EU and Canada focus on?

Canada and the European Union are guided by shared values. In a world marked by uncertainty, geopolitical tension, and power politics, this provides a solid foundation of trust and predictability. It also creates significant opportunities to strengthen collaboration in three key areas:

Technology

Both the EU and Canada face a common challenge: compared to the United States and China, they lag in competitiveness in critical fields such as artificial intelligence and robotics. For example, the top four U.S. tech companies invest 35 times more in AI than the top four in Europe. In 2022, China installed more industrial robots than the rest of the world combined.

Joint initiatives in research and development, funding, and digital infrastructure should be intensified. Canada is particularly well-positioned to become a hub for data centers, forming part of a transatlantic AI backbone, thanks to its cool climate and abundant energy resources.

Energy & Cleantech

The second key area for collaboration is energy. Canada has an abundant supply of (clean) energy, while the EU still faces a significant shortfall following Russia’s full-scale invasion of Ukraine and Germany’s nuclear phaseout. A closer energy partnership could help ensure a reliable supply and reduce energy costs in Europe.

Additionally, both Canada and the EU are global leaders in cleantech. According to the Global Cleantech Innovation Index, Canada ranks second worldwide, with several European countries like Germany, France and Belgium also in the top ten. A joint strategy for developing and marketing cleantech solutions could help counter China’s dominance in green technology, especially in the energy and transportation sectors.

Security

Security cooperation should focus on two areas: Arctic security and cybersecurity. Both regions are increasingly contested and strategically important. In the Arctic, Canada and the EU could enhance joint surveillance, conduct military exercises, and coordinate on stability and sovereignty.

In the cyber domain, both face growing threats to critical infrastructure and democratic institutions. Stronger cooperation should include intelligence sharing, coordinated response planning, and joint efforts to secure digital infrastructure.

How do the current political relations between the United States under President Trump and Canada under the government of Mark Carney look like?

Recent remarks by President Trump, suggesting that Canada should become the 51st U.S. state, have had a deeply negative effect on U.S.–Canada relations. During my visit, I was struck by how many stores displayed “Made in Canada” or “Canadian Product” labels as clear signs of the ongoing trade dispute and a visible expression of national pride and distancing from the U.S.

While trade talks between the two countries, still each other’s largest trading partners, are expected to conclude by July 21st, it remains uncertain how much trust has been permanently lost, even if a deal is reached.

Politically, Prime Minister Carney has managed to strike a delicate balance: protecting national interests while keeping diplomatic channels with Washington open. Strategically, however, Canada is clearly diversifying. It is expanding economic and security partnerships with Europe, Asia, and other allies to reduce its dependence on the U.S.

At the same time, Canada may benefit from growing international skepticism toward the United States. Thanks to its geographical proximity and traditionally strong ties, Canada could be seen by global businesses as a stable gateway to the U.S. market without the political volatility.

Once considered one of the world’s most stable alliances, the U.S.–Canada relationship is now under serious strain. What began as a trade dispute may ultimately mark the beginning of a broader geopolitical realignment.