Sawt Falasteen - Canada, EU launch new alliance with deals on Ukraine, minerals, AI

The EU said Canada will join a 90- billion-euro ($103 billion) support loan for Ukraine and work closer with Brussels on anything from critical minerals to artificial intelligence, after a two-day summit in Montreal.

"The world's becoming more dangerous and divided. Our societies are being shaken by new storms," Canadian Prime Minister Mark Carney told a press conference, mentioning eroding democratic norms and "the weaponization of trade".

"Together, Canada and the European Union are anchoring the ground. Anchoring our ground to uphold our values while forming a protective canopy under which our citizens can all thrive," he said after talks with EU chiefs Ursula von der Leyen and Antonio Costa

Already sharing a free trade agreement, Canada and the EU have sought to move closer together since Trump's shock return to power.

Both Canada and the EU have been hit with US tariffs and territorial threats.

Ahead of the talks on Friday, Von der Leyen, the European Commission president, said Canada could not become a "full-fledged" EU member due to its geographical location, but the bloc wanted to bring it "as close as possible".

Carney said Canada will join the EU's 90 billion euro Ukraine support loan for Ukraine with an initial participation of 500 million euros.

The announcement comes at a time where Brussels is looking for help to plug gaps in Kyiv's finances.

"This sends a powerful message to Ukraine. Together, we are stepping up our support for Ukraine," said von der Leyen.

- 'Alliance for the future' -

More broadly Canada and the EU are building what a statement called an "alliance for the future to create a common prosperity and economic security space."

As part of this, they signed a digital trade deal and a separate pact allowing the European Investment Bank to back Canadian critical mineral projects.

Canada is rich in rare earths and critical minerals Europe currently sources mostly from China but needs massive infrastructure investment to jump-start its mining industry.

Europe opened its supercomputing infrastructure to Canadian researchers, industry and start-ups.

The allies also agreed to deepen cooperation on satellite connectivity and navigation and artificial intelligence -- a field where they are playing catch-up with the US and China.

On Thursday, Ottawa announced a CAN$1.6 billion ($1.1 billion) investment in the Canadian AI firm Cohere. The company has recently partnered with Germany's Aleph Alpha in a move that Carney said was an example of what Europe and Canada could do together.

The two parties launched work towards Canada's participation in EU initiatives like the Erasmus program, which allows university students to spend a semester abroad, and the Galileo satellite program -- an alternative to the American Global Positioning System (GPS).

B.Mahmoud--SF-PST